You will see a negative attitude preferring an independent choice of pieces instead. However your budget is modest.
I do urge getting HDMI as it is the future choice due to being digital & both video & audio through one wire. Don't get very concerned about total watts power. Few speakers today impose really difficult loads due to operating on, say 4 ohms & less. Most common, regular price ones are 8 ohms.
If you choose good name brand speakers you can crimp $$ now & add on later for more channels. 5.1 is plenty of channels for normal size rooms.
DVD player: single play is more practical choice. Can't you actually get up between movies to change it? Don't go ga-ga as DVD players generally last just around 5 years. The Oppo you'll see referenced in threads here is an awesome bargain as it's really top rated by reliable source lab tested reviews. About $170.
Receivers benefit from much long term competition & offer great value. A couple hundred bucks can you results so you can make better speaker choices. See C/NET entry level receiver reviews. You are trying to do a lot with thin greenbacks. Best of luck hunting & enjoy.
This seems to be the place to go for some great advice. I'm going to be purchasing the Samsung LN-S4695 LCD HDTV and want to be able to get a fairly nice HTIB to go along with it. ( I can already hear the collective "Siiiigh." from all the pros as I type this.)Since a majority of the money will spent on the TV and and hardware, I really have no choice but to get something middle of the road. I really want to go the whole HDMI thing as much as possible. I was eyeing the Sony HT-7000DH HTIB. It's 5.1. Has two HDMI inputs and one out. And I think 900 watts. We really aren't big time movie buffs but would really like something that we can enjoy. Also has a 5 disc upconverting DVD player. What do you think guys??? Would I be happy with this or are there better brands out there??? Lookin to spend roughly $5-600 clams.
Thanks for you valuable advice and patience.