I recently put together a great sounding system for my mom. In less
than two weeks on my local craigslist, I accumulated Boston Acoustics
CR6 for surrounds, CRC center, and their wireless 8" sub. I found a
pair of "RCA" Radio Shack/Linaeum cast aluminum speakers to use as front
mains (I love tweeter design for realistic sound -- no pun intended).
Then I found the current production Best Buy house brand receiver that
does all the bells and whistles at 5.1 (including HDMI switching and
TrueHD and DTS-HD Master Audio -- you CAN hear the difference). Plus,
the receiver integrates into her Dish remote, which was a must for her.
One button on her Dish remote turns on her TV and her surround system.
And the same remote adjusts the volume at the receiver. HDMI cables
from Dish box to surround receiver, then to TV.
Around $300 and some CL effort netted some pretty impressive sound. It
sounds SO MUCH better than the big box store "home theater in a box"
systems that sell for more.
And yeah, once you watch a Blu-ray, you won't want to watch movies any
other way. Online accounts are cheap -- get your blu-rays by mail
instead of streaming. That way you are guaranteed true 1080p picture
AND uncompressed lossless DTS-HD Master Audio.
Last but not least, look into over-the-air HD reception in your area.
You may no longer need to pay a cable or dish company.