If you were to build a Home Theater today, it would be much different from a few years ago. Here is what I’d get:
* Epson 1080p projector. We just got one for the office. Kind of a miracle of technology
* MacBook Blu Ray. Ok, this hasn’t shipped yet, but if you look at it a MacBook has digital optical output through a Toslink Mini, it has DVI output as well, so it is a really nice digital device. Also for control, you can have another Mac control it as the main controller, or control it through your iPhone or use the infrared thingy. Pretty cool and it saves you from getting a dedicated DVD player that you have to control. Plus you get Internet and gaming on the same box. The best thing will be if they ship it with a solid state drive, so you don’t have to worry about hard drive failures
* Time capsule galore. Digitize all your movies and stick them on a terabyte server in case you get tired of flipping. With Blu Ray, the disks at 30GB each, so you only get about 30 on a TB drive, but for DVD quality, ,you get more like 300.
* AVR. You still need something that has got big watts to drive the speakers. Last time I used Onkyo and then switched to an internet brand called Outlaw, so need to recheck this.
* Speakers. Of course you need 7.1 output as well.
* Home distribution. With wifi everywhere, you can use Airport Express to feed just about any existing stereo or more simply, stick an iPod Touch with Logitech Pure Fi everywhere. This has great speakers and is also an AM/FM clock radio.