take a look at the Oppo 970, $149, which is remarkable fine sounding for a universal machine. upconverts to 1080i via HDMI as well. quite a bargin. oppodigital.com
I forgot about the Dayton's. You are right! The Dayton 12" represents a better value over the Velodyne 10". A buddy of mine uses that same sub with a pair Magneplanars being powered by a Jolida hybrid amp (tube/ss) and it can hold it's own.
Sony HT-DDW900 Home Theater System is on sale for $229.99 at Cirucuit City. The receiver has the HDMI switching capability.
Hey guys I wanted to dig this back up because I wanted to know a good system for a smaller room roughly 12' by 9.5'. This might change some of the advice around here. Keep in mind this is mostly for movie watching on my In72 and I want the best bang for the buck, (around $600-$700).