First-time buyer of sound system, any tips, suggestions, advice?

Last year I decided to make the jump and get an HD television. For a while, I was content with the picture quality and it really changed the way I played games. But there was always something missing; a surround sound system. I've recently got the itch and I'm looking around in stores and online for sound systems, but to put it bluntly - I'm not really sure what I'm suppose to look for. I'm very uneducated in the matter to be honest. Is there a sound system someone can reccomend for around 200 - 250 bones? I'm looking for a 5.1 system to hook up my PS3, 360, and MAYBE Wii to. I have an HDMI connection for my PS3 and component for my 360, is there a way I can utilize both of those to its fullest potential?

I apologize if my questions are a complete mess. I'm a college student with not too much in the way of money, I'm looking for something relatively cheap that can give me 5.1 so my entertainment center can be complete. Thanks for your time and response :)

The biggest key, especially if you're going HD, is to get a surround sound with at least the basic decoders. A 5.1 system that is Dolby Digital AND DTS compatible is ideal (and you're going to notice that DTS is more rare in boxed systems). You also need to make sure your surround sound receiver has at least 1 optical input for surround sound (which you should get at least one unless you get one with a DVD player built in). I have been able to get my friends good enough surround sound systems for about $250-$300 that have 2 optical, DTS, and Dolby at places like Best Buy. If you can spare a few more bucks ($300-$500) head to your local Circuit City and pick up an Onkyo system; it's my opinion those are some of the best box-in surround sound systems.

As for the HDMI, I personally have issues with using it for audio with my 360, so I use optical for both my 360 and PS3, but it's all up to you how you want to hook it up. Hope this helps!

The person above me covered a lot of the basics. The only thing I can add to it is from a quality perspective, look for THD (Total Harmonic Distortion), the lower the better, and frequency response (you'll want at *least* 50hz - 20khz, broader if possible).

-Betta