So we got a 32" LCD TV, new DVD player and we upgraded our Dish Network stuff to HD and a Tivo-style DVR. We also got a single Yamaha surround sound speaker thing. Pretty neat, no wires running across the room. Our old stuff was a 19" tv, and old VCR, DVD player and a CD player stereo.
There were just so many options and variables. There are no definitive answers in the home stereo and home theater market. And the only thing the sales people at the electronics stores want to sell are the most overpriced stuff, like $100 cables. We got all our stuff online... such a deal.
In the end, the tv looks great, and the mess of components is cleaned up... somewhat.