I am trying to build a home theatre system using my pc as the media centre. I would like to have surround sound and an LCD display capable of displaying a sharp image while watching movies and playing pc/xbox360 games. I am somewhat confused about what sort of setup to purchase but I have a few ideas. My PC specs are as follows  
 
Intel core 2 duo E6600 (Oc'd to 3.11 GHz)
2GB Kingston 667 DDR
Geforce 8800 GTS 320MB
320 GB Seagate SATA II HD
Philips 2x BD-ROM Drive
Pioneer 12x DVD Rom  
Soundblaster Audigy  
 
I was thinking of getting this display:
 
Sharp Aquos 1080p  
 
and connecting it to my 8800 GTS through a DVI to HDMI cable. I sold my Xbox 360 a few months ago and am planning on purchasing one with an HDMI output so that I can use another one of this LCD's HDMI inputs.  
 
Now comes the question of audio. This is where I am having problems deciding what to get. Part of me wants to settle for a set of Logitech Z-5500's and plug them directly in to my SoundBlaster audigy. The problem with doing this though is that I would have to unplug the speakers from my computer every time I want to use my Xbox 360. Basically what I am asking is if there is a way to use a receiver with home theatre speakers that I can use with my Xbox 360 and my pc and if there is what kind of hardware would I need to purchase.  
 
Lastly, money is kind of an object as I am saving up as much as i can which probably will not be more than $2500. One of the main reasons I was originally attracted to sharp's 1080p display was its price and low refresh rate (6ms).  
Any suggestions on the best kind of hardware I should use for what I want to do will be greatly appreciated. Thanks!  

since your building an HTPC, your defintally doing to look at heat/cooling as something important.
 
the 8600gts should be more than enough for you, assuming your not playing 3D games on it (atleast at 1920x1080)... the 8600gts is a very effecient/quiet card which means your system wont be as loud

Sorry I wasnt clear enough in my post. I already have the pc I listed above. What I am missing is the display and speakers.  

dude use the url tags
get an audio switch / selector, press a button instead of unplugging?
projector?

So really all you're looking for is a receiver with HDMI inputs x2(min.) and one output to the new TV, and speakers.
So something like a Sony STRDG510 (receiver), Westinghouse TX-42F430S (LCD 1080p), and a 5.1 set of surround speakers. Oh and add the 360 elite.  Is this what you're looking for?

That sounds like it would do it except I am not sure how i would use that receiver for my pc audio

Anyone have any idea how to hook up a computer to home theatre speakers through a receiver (hdmi)?

I'll have to search that one on http://www.videohelp.com/...
darn, no help

from http://compreviews.about.com/od/video/a/HDMI.htm

I know the ATI radeaon X2900 has a built in 5.1 sound though the HDMI for blue ray and HD-dvd, should work for other audio as well.  

that should apply to the rest of the R600 series as well, only good for 5.1 channel.
from http://www.channelweb.co.uk/person [...] -hd-2900xt

really confused about this for the S/PDIF passthrough support from microsoft because of DRM
the creative XFi cards have updated drivers but are only supported in Vista 32-bit {x86}

DOWN WITH DRM, I'm still waiting for all this sh*t to get resolved It should take a consumer a month of research to buy the right stuff for their Media Center.

anyways as a gaming center the audio passthrough will work, but DRM should mess with any hopes of having this WORK the way the hardware is designed to.

I'm so sticking to DVD.