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Always plan ahead. Might not need 7.1 now but maybe in the future. You will save money this way.
HD TV - LED/LCD or Plasma make sure you get a 1080P picture is amazing. You can get a larger TV if you go with Plasma
Speakers - Sony/Bose/Infinity/Polk to just name a few. If you wanted step up go with B&W or M&K.
Make sure you get a powered sub - this brings a home theater to life
Receiver - Onkyo makes great units. Also Denon and Hamron Kardon Make sure you get one that has True HD so you can take advantage of the Blu Ray sound.
I am a huge theater buff...I have to many expensive hobbies...LOL
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