Yea home theater is a terrible terrible habit to pick up lol. My project right now is getting HD-DVD playback on my HTPC (Using the Xbox360 HD-DVD drive). Currently my HTPC consists of a P4 Nothwood at 3.6ghz, 1gb of ram, with a Radeon 9800pro. I can run the VC1 and Mpeg2 discs ok but the H.264 encodes are a freaking slideshow. I have ordered an Athlon64 X2 4400+, 7600GT HDCP compliant video card and an Asus SLI motherboard and should be receiving those goodies sometime next week.
For the display side of things I was using an Optoma HD70 720p projector but I just sold it and I am picking up a Mitsubishi HD1000U 720p projector. (Since the price on the Mitsubishi was just dropped five hundred bucks down to $999 !!) My screen is a custom built 132" 16:9 frame with Stuart Studiotek 130 material and 4" of black felt border.
My audio setup is pretty modest, I purchased everything when I was still in highschool and it still sounds good to my ears so I haven't upgraded.
-Sony STR-DB930 receiver
-Acoustic Research S50 fronts
-Acoustic Research S20 Rears
-Acoustic Research SC2 Center
-10" Velodyne Sub... no idea on the model number anymore.
-All speaker cable is "Premium III" from http://www.bettercables.com
-Monster Cable HTS2500 Power Center
100% of what I watch is fed via the HTPC. My video watching is mostly DVD (Upsampled and Cleaned up via FFDshow), and random standard and high def content from the newsgroups. My audio collection is all Ogg Vorbis lossless audio. Sound output is handled with an Audigy 2 ZS via 6 channel analogue output into the 6 channel input on the receiver. I was using Coaxial SPDIF for a while but reverted back to analogue so I can do Dolby TrueHD and DTS HD audio on the HD-DVD's
And yep I think that is about everything