I'm looking for a system to hook up to my Xbox360 - I'm going to be using this #1 for gaming, then also for watching DVD's and maybe streamed movies from my computer. I also watch OTA HD using my TV tuner (that does have optical audio out). Right now the xbox is connected via components. I'm not planning on getting an HD/Bluray player until formats are sorted and prices drop, probably years from now.
I was excited about getting a HT-S790 for ~$300 after reading about it today, but it seems the lowest price is more like $450 right now. I have a 237V LCD, and sit about 10ft away, so a medium sized room. My reference point for audio is the Klipsch promedia 4.1 and 2.1 computer speakers that I thought were good stuff, I don't have any high-end home theater experience.
Budget is $350-500, I'm more of a "value player", in that I don't mind spending $500 as long it's a greal 'deal', ie. a system that normally sells for higher. Help?