building a cinema / movie room

[Psilonaught]

not posted here in a while but i need some advice.

I'm in the process of buying a new flat and its got 2 beds, and since we only have guests round every now and then i want to turn the spare room into a comfy TV room with a sofa bed for the guests:

I have about £1500 to spend on speakers and panel, and I already have a very nice Yamaha AV amp (forget model but it's huge!) and Sony sCD/DVD unit.

I plan on getting Sky HD at the same time so the panel needs to be fully HD compliant and i want to be able to play my Xbox 360 at max resolution as well.

Regarding speakers they can't be floor standers, and they will be wall mounted in the 4 corners.

With Sky HD, I assume there is an optical / coaxial output, will I be able to watch normal TV in Dolby 5 channel (when transmitted)?

thanks for the help

 

[Psilonaught]

thanks guys. I forgot to mention i already have a decent centre speaker from my existing 5ch setup, so i don't need that. Would I not be able to buy x4 decent Misson speakers from RS and a good quality sub woofer?

I bought a good pair of Mission bookshelf speakers for £50 and there are really fantastic

how about Wharfedale SW150 £250 and x4 Kef CRESTA 10 £220

That gives me £1000 for the panel - i can add an additional £300 for the Shy box I guess as i don't want to scrimp on the TV. Can I get 40" HD panel for £1000?