Home theatre in a box is good for you if you can't afford much. I got a Philips system, and while it sounds great, the DVD player is absolute junk. Doesn't work on progressive scan mode (never has) and discs get stuck in it, and it does really unpredictable things upon pushing play.. you just never know what part of the movie you'll start in...
But overall, the system is doable "for now". Eventually, I plan to do what the folks here are recommending and do it right: get a real receiver and amplifier, and upgrade components as I go along. Having huge sound isn't a big deal right now since I live in a condo and can't crank the volume anyway, but down the road...