This system will push a lot of air, and that's about it. Which means it will be pretty loud. But I'd save my $ and get something smaller that has better components.
This would be a good system if you just want to hook up your iPod, crank it up and throw yourself around the lounge room. Or, if your'e not the kind of person that chooses the paint in the living room for it's acoustic qualities rather than it's stain resistance.
Kind of like if you could buy a dual sus DH bike with 200mm of travel for retail $500. Sounds awesome. If you have never ridden a bike before it would seem like the ducks nuts. But get yourself on a $5,000 DH bike and you instantly will see why there is such a price difference.
It's all in the quality of the components.
If you buy it, you probably won't be disappointed. But when you hear the transparency, tight detailed bottom end and glassy highs of a clean, quiet and powerful system projecting an optimally aligned stereo image you will notice the difference straight away.
Hence, I cannot recommend any system of any decent quality for under $1,000, let alone a 7.1 setup. Sorry I can't help there. You should go down to the store and take it for a test drive anyway. Eye of the beholder and all.