im using asamsung 750 ( 52 inch, most likely way out of your price range, ) and a logitech z5500, i highly recomend the z5500 because it is made for games, and it has an optical in, and it is only 500 bucks, sounds as good as something twice the price.
now for a tv, i would sugest a samsun 5 series, or of you have more money then brains, go with a smaller 7 series, make sure it is no more then 8 ms respnce time and DONT GET PLASMA, lcd only. unless you watch a lot of movies, get lcd.
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