Here is my home theater room.
http://www.avsforum.com/avs-vb/showpost.php?p=9796602&postcount=2222
Setup:
Ascend Acoustics CBM170SE Left and Right Fronts with CMT340SE Center and HTM200's for the rears.
SVS PB10-NSD sub
Onkyo SR804 Receiver
Oppo971 DVD
Xbox360 + add on HD-DVD drive
Not shown in picture is a Sony BDP S570 Blu-Ray player
Mitsubishi HC3000 projector (home made Monkeyman mount)
Screen is 102" (16x9) also DIY with Silverfire super lite screen paint from the screen DIY forum.
Back in 2007 when I bought the projector it was around $2k now you can get it used for $275 Buying a used projector I could put this system together for around $3k now. By all means do NOT buy HDMI cables at a chain store like Best Buy, Fry's, Circuit City, etc. Go to monoprice.com and pay 1/10 of what the chains are charging. I've got a 30' HDMI running up the wall behind the screen over the ceiling to the projector and it's perfect. And that's a "crappy" first gen HDMI cable. I made the screen from blackout cloth and a screen paint mix from the avsforum. I also made the couch riser, speaker stands, and component stand. If I were to do it again I would make a vertical component stand and put it in the back of the room and not directly under the screen. All the LEDs from the various components are annoying to look at while watching a movie.
Xbox on anything smaller than a 100+ inch screen is now unplayable for me. It's also really nice when 4 people are playing because each person still gets a pretty nice size screen. My kids love it (spoiled little farts) "back when I was a kid and we played pong and loved it!"