If you've got a DVD player already, try something like the SONY Sony STR-DG 910, it has 7.1, HDMI pass through, tuner, easy to set up, I got mine for £270. Then a set of speakers, may be something like this,
http://www.superfi.co.uk/index.cfm/p...roduct_ID/3377.
It depends whether you want an all in one solution or something a bit different.