I have three options for my first surround system. I have a low budget of around 300. The store is willing to work with prices and here are the three setups that I am able to afford and looking at.

Panasonic SC-PT760 - HTIB $300 - 1000 watts

Yamaha YHT-390 - component all in one box $300 - 600 watts

Logitech Z- 5500 - $250 - 1010 watts


Any suggestions for me?

Come on someone help!!!!

I would try to come up with an extra 150 or so and get this Onkyo HT-S5100 7.1 Dolby EX and DTS-ES Home Theater System.

Whichever you choose make sure it is 8 ohm. I would try to go with the Yamaha if you have to choose one of them, but try to get the extra money even if it means waiting another month or so. With the Onkyo you can always upgrade it as well. I have also seen some nice Denon HTIB for around 4 to 500.00 as well.

Out of those 3, the Yamaha. It is your best choice for future expansion.

The all-in-one units are just that. Usually very few inputs.

Go with the Yamaha or comparable type system such as the Onkyo 3100/4100.

http://www.bhphotovideo.com/c/product/543862-REG/Onkyo_HT_S4100S_HT_S4100S_5_1_Channel_Home_Theater.html

Also, what would you be hooking up the system to?

That is truly a good deal i have only seen the 4100 for 499. Is that one a refurb?

My setup includes a PS3 (gaming, DVD, Blu Ray), 32" LCD (terrible speakers) and perhaps a cable box later on down the road.

That is truly a good deal i have only seen the 4100 for 499. Is that one a refurb?

Really, where have you been shopping? You can even get the 5100 for way less than $499.

http://www.amazon.com/Onkyo-HT-S5100-Channel-Entertainment-System/dp/B0016KEXRE/ref=pd_bbs_sr_3?ie=UTF8&s=electronics&qid=1231557470&sr=8-3

If you want the 4100 in black, its $320 shipped.
http://www.amazon.com/Onkyo-HT-S4100-Channel-Entertainment-System/dp/B0015S9UWU/ref=sr_1_1?ie=UTF8&s=electronics&qid=1231557643&sr=1-1

So I guess everyone is telling me to save my money until I can afford Onkyo!

The Yamaha 390 isn't too bad. It's comparable to the Onkyo HT-S3100.

Actually the Yamaha has an active 8" subwoofer and its receiver has a sub pre-out so it's more comparable to the HT-S4100.

The Yamaha adds two HDMI inputs while the Onkyo has none. Looks like the best of the three...

So for my situation - PS3(HDMI) and assume i have a cable box(HDMI) I should either save for a Onkyo 5100 or get the yamaha yht 390?

I would save for the 6100, personally. Adds HDMI audio. If you can't save that long, the Yamaha would be a great choice. 5100 would be good if you wanted 7.1, but you're limited to optical cables for audio from the PS3.