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Setting your budget
Before you purchase any home theater equipment, you need to establish a budget. You may not stick to it exactly (allow for + or - 15%), but you need to go into the process with an idea of what you'll be spending. Too many people buy the biggest TV they can afford and they're done! They've used up 100% of their budget. Be sure to save some money for the other half of the HDTV equation- your audio system! The higher resolution of HDTV is only half the picture! Don't forget about all that great Dolby Digital 5.1 surround sound you'll be missing if you don't buy separate components for your audio! I've seen differing breakdowns on how much you should spend on each component of your system. While only you know how important sound is to you, or how often you watch sports and movies (which are especially great in 5.1 surround), below are some general guidelines. Component Percentage of total budget TV/Projector 50% A/V Receiver, speakers 30% DVD/HD-DVD or BluRay player 10% Cables, TV stand, etc. (screen if using a front projector) 10%
With those numbers in mind, here's a look at a few budget examples: $5,000 system Component Purchase Price TV/Projector $2,500 A/V Receiver, speakers $1,500 DVD/HD-DVD or BluRay player $500 Cables, TV stand, etc. (screen if using a front projector) $500
$10,000 system Component Purchase Price TV/Projector $5,000 A/V Receiver, speakers $3,000 DVD/HD-DVD or BluRay player $1,000 Cables, TV stand, etc. (screen if using a front projector) $1,000
Based on the numbers above, here's a look at the tentative list of components I've selected for my new basement home theater:   Component Purchase Price Sony VPL-VW50 1080P projector OR Sony KDS-R70XBR2 1080P SXRD TV $4,000 - $6,000 Pioneer Elite VSX-84TXSi OR Sony STR DA5200ES Receiver $1,000 - $1,500 Aperion 5.1 or 6.1 surround system $2,200 - $2,600   Cables and accessories (HDMI, speaker wire), surge protector, etc. $400   Rack or stand and/or screen $600 - $800   Total Budget $8,200 - $11,300
Since I have a decent upsampling DVD player, I'll probably wait on purchasing a "next generation" DVD player until the dust settles in the 'format war'. If I were buying one today, I'd probably get a PS3. Great gaming system, great BluRay player. All in one! Like I said earlier, the percentages above are just a guideline…

 

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