Do you need the receiver too? if not you have other options, but if you do then my first system was a $200 sony from target. Best buy also had a similar system. They came with cube speakers and an 8" sub that was powered by the receiver. It did the job until we upgraded.

Actually you don't want either to prevail. I want both Blu Ray and HD DVD to stay around. I just want all the moveis to swing both ways.

If there is competition, it will be better for games and movies. If Sony owns the market the technology will stagnate. If there is competition they will push each other and we will be better off for it. Look at it now; they are in a race to see who can hold the most data on their system. How is that a bad thing? It is just the fact now that we don't have all the moveis we want in Blu ray.

This is off 360's website....but I never get it to work.

Burn a DVD or CD

The other possibility is to download a file from Xbox.com and burn a DVD or CD. Use this method if you don't have your console connected to broadband, or if you use a dialup connection to the Internet. You could even do this at a friend's house who has a broadband Internet connection and a DVD or CD burner.

To create an update disc you need the following:

• A DVD or CD burner.
• A blank writeable DVD or CD.
• The update file from Xbox.com.

This procedure involves burning the DVD or CD by using Microsoft Windows DVD or CD burning software. If you're using third-party CD/DVD writing software, follow the instructions for creating a data disc.

The same steps apply when burning a DVD in a DVD burner.

To create a DVD or CD:

1. Click here to begin downloading the update folder. Save it as "$SystemUpdate_[date].zip" anywhere on your computer.
2. Place a blank disc in your burner.
   
   From Windows Explorer, select Open Writable CD Folder Using Windows Explorer or open the CD drive icon.
3. Drag the zipped $SystemUpdate zip folder to the CD Folder. If the CD write window doesn't open by default, drag and drop folder on the CD/DVD RW drive.

   Note

   If you are using an earlier version of Windows you will need to open the file using a separate utility (for example, WinZip).

   
   
4. In the Explorer window, click Write files to CD from the CD writing tasks or right-click the CD/DVD RW drive and select Write these files to CD.

   Caution

   The update filename and folder structure must be intact for the update to run properly.

   
   
5. Follow the steps in the CD wizard.
   
   When you are finished with the wizard, the CD will eject. Your CD is ready.

To update the console:

1. Place the CD in the Xbox 360 console.
2. Power cycle the Xbox 360 console.
3. The update program will start automatically. Select "Yes, update now" and press the A button.
4. Wait for the update to complete.
5. The console will reboot and you're done.

Bitstream and PCM make a difference depending on what your receiver can do.

If you have a new receiver, then you may want to use bitstream.

Are you looking for a home theatre in a box or putting a system together?

What is your budget?

How big is your room?

it also depends on what you want to do with it long term....

if it will be just your xbox station, then 720P would be fine. Xbox game resolution is 720P/1080I. Even if you tv is native 1080P, it will still show 720P resolution.

If you plan to do more (HD DVD, Blu ray) in the future, go 1080P now.

When you are playing a movie either DVD or Blu Ray, bring up the options menu. There is a speaker icon that allows you to turn up the gain on the sound. I have mine at +1. I turn my volume up on the 805 to around -10db for the wife level and around 0db for me. You also have to watch what crossover points the mic will automatically set up for you. Some of them were off for me.