I've got an earlier model of this one -
http://www.sony.co.uk/product/hcs-ci...-kit/ht-sf1300 This is just the amplifier and speakers and no DVD player. I have an upscaling DVD and V+ going in via HDMI with one output to the TV. Sound is via optical for the V+ and co-ax for the DVD and works great. The system takes the Pro Logic II or Dolby Digital from the V+ and Dolby or DTS from the DVD completely automatically.
We use it all the time, never using the TV speakers at all, using a Logitech Hamrony remote to cut down the remote control clutter.
On a quick look, this system is around £300