Big money doesn't always equal big performance and small money doesn't always equal small performance, so don't be deterred.
I've spent far too much money on hi-fi in the last few years and, with three £1,500 set-ups that were carefully chosen I failed to consistently enjoy the music. My current assembly of 2nd hand seperates cost me about £70 (for the CD, amp and speakers) and it outperforms all the other kit I've had.
Chebby's Denon suggestion is a good one. Its a quality unit with good sound and all the features you require. Just make sure you try it and test the volume control before you buy - I sent one back because I found it impossible to achieve a comfortable volume setting due to the gaps in the volume settings too large.
The Onkyo units of similar design are well worth a look. Well made and with excellent sound.
Alternatively look at 2nd hand gear. Your budget would easily buy good quality CD, tuner, amp and speakers and you could connect your MP3 player to the amp using a decent mini-jack to 2 phono cable.
As an idea - Denon TU260L Tuner, Mordaunt-Short MS10i speakers, Denon PMA250 amp, and a decent used Sony or Technics CD player. This would give you cracking, enjoyable sound and the ability to change components on an individual basis later on.