Home Cinema setups are fine but..

[Thruster]

Reshke

It all goes back to the question of what do you intend to playback through the system. If it's going to be primarily for video sound you probably want to take advantage of audio that complements your HD monitor. If space and wire paths permit, I say get as many channels as your budget will allow.
BTW, have you seen the new generation DLP's? I understand they are lighter and much slimmer than gen 1's, offer a better picture and are more reliable (so they say).

[Reschke]

I looked at several different TV's before going with this one. The picture versus the price just couldn't be beat. We ended up getting this on for $800.

[Rondar]

I use Magnepan SMGa speakers, tube preamp, oppo dvd player and have an Adcom power amp along with a small sub.  Sounds  absolutely great for music and is fine for home theater use.  I have the speakers  just outside my screen edges for my panasonic projector.  While not surround, the audio imaging is great and I find I really dont need noise blasting from every corner of the room.

Dvd's of David Gilmour, Yanni, Ian Anderson, TSO and others are simply fantastic to listen to and watch, as when you go to a concert it is not 5.1 surround, it is what is on stage.