I think the quality of the Home theater sytem is very important. If you buy low priced systems just for the sake of setting up a home theater system, you wont have much joy.
You need atleat a 29 inch Lcd or plasma television. You need a good quality output from DVD. Without quality output, even if you have the best speakers it wont work.
Any new sony television with sony dvd player is a good combination. Go for Harman Kardon speakers or Bang and Olufsen ones .
