I was going to recommend SVS (thanks to CP I bought their PB12-NSD), but it's about twice as much as your budget (I'd still recommend it though). It's massive, but really good. As for other brands, Velodyne as a whole are one of the best out there. Are you going to purchase any other speakers? Given the markup on speakers are ridiculously high (I bargained it down by 50% of the stated price at futureshop), I'd recommend going to futureshop, negotiating with several locations over a few days, and finding who'll bite. For $400 you can find a very good sub. If you take a package of other speakers along with it, even better. What I found out from futureshop though, is on speakers they like to keep a 30% mark up at the very least. If you're good enough, you can get it down to 20% I'm sure.
As for Klipsch subs, I agree 100% with you. I actually bought a full 7 surround system with them, but left out the sub specifically because it's weak. Again, I'd go the SVS route IF you want to pour some extra cash into it, but if not, I don't think Velodyne is a bad choice at all.
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