Here's an example of a receiver rated at 75 watts per channel that would blow that philips receiver/home theater unit out of the water in terms of sound volume and sound quality, and its only $300:
http://reviews.cnet.com/Onkyo_TX_SR5...-31431599.html
You'd still have to buy speakers, and you could get a dvd/divx player for $50.00.
To give you an idea of how power ratings can be misleading, check out this excerpt from the review:
"To get more of a handle on the SR503's sound, we compared it with
Pioneer's VSX-515 A/V receiver ($275). Even acknowledging the 515's on-paper power advantage--it's rated at 110 watts per channel--we give the nod to the SR503. It performed better when we pushed the volume up--sounding richer and fuller on James Taylor's
JT SACD, for instance--while the Pioneer's soundstage was flatter and smaller in every dimension."
OK I've been editing too much here, here is my final edit before I stop adding to these posts: Signal to Noise ratio means nothing if they don't tell you the output level the noise is occurring. So the Philips' specs mean nothing. Look for specs where the company tells you what the Total Harmonic Distortion is at a certain output level. If they tell you that, it means they have nothing to hide. Typically, it will read like, "less than 0.09% THD at ____db".