For that kind of price range, you might want to check craigslist for surround sound systems that include a receiver.
I've recently gotten an xbox, and a 32" flat-screen with it. The graphics and game-play are amazing, but I'm really missing some surround sound to go with it. I'm no audiophile - in fact, I know very little about is, which is why I'm posting this :P.
I live in a small room, and judging from different advice here on the forums I figured I need a 5.1. I am really on a budget - perhaps 100-150, and I'm aware that might not get me much in terms of quality. What's the best I can do with that? I looked at Logitech X-540 and G51, which are both within my budget, but I can only find reviews of them used with a PC - do I need something else? Will they even work with my Xbox and TV?