After months of planning, reading up and talking to far too many friends asking their thoughts, I am close to choosing and going for the kit I feel is right for a home cinema room. I have certain requirements and certain aspects I feel are important to note down as this will help with anyone wanting to comment / appraise what I am going for :
1. Small to medium size room
2. As a "get away from it all room" - for film / DVD watching - HD quality of course.
3. Would like a HD external viewing experience.
4. Would like to have decent sound for music listening...mainly via ipod.
5. Not so much of a gamer - but may add a Wii as some stage.

I have been advised of the following :

1. Panasonic 42" (or 46" if I can fit it in and afford it) PZ81 - with Freesat.
2. Onkyo 606 - receiver
3. B&W MT-10 5.1 surround sound system
4. Panasonic blu-ray (for DVD, existing DVD to upscale and for CD's)

Surprisingly this does just about fit my budget (plus cable, install etc)....so I just want to check I am not missing anything....

If anyone has the time to appraise or advise, that would be great.

Thanks for the postive respone...

I figured the kit I was going for was good, just didnt want to get 6 months down the line and wish I had gone for something else.

Anyway it is all bought...Plasma arrived and read up a review which gives it a cracking write up. By the way, credit crunch doesnt exist guys and girls.....I went to my local Panasonic dealer with a deal I could get on Ebay from another Pana dealer....my local guy wouldnt go near it - not even for a sale there and then!!!! They let me walk out of the shop on them for a £1000+ sale.

Upgraded the the B&W MT-20 as this is the best seller and got a discount back toward the MT-10 price. Cheers for the 7.1 advise.

Cables thrown in - cheers for the hint.

If anyone wants me to confirm how this all comes together when installed - let me know.