Budget wedding reception food help!

Serious eaters,
My sister is getting married about a year from now (October 2012) and is planning on doing a budget wedding. We are planning on providing appetizers, drinks, and the desserts but will be getting a caterer for the main meal (evening, 5-6ish). I am just now looking at caterer prices for her and it seems like the only thing available are expensive mediocre food!

Is there a way to do a wedding dinner on a budget? We would prefer a sit down dinner but is that more expensive? There are no themes for food yet, but there definitely needs to be some creativity to it, not just the usual fare.

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