Cleveland - Lifehacker just published a terrific article on how to build a home theater. It's not like the ones we build at K+ Integration Systems which typically involve an architect, builder and interior designer. This is a guide for someone who just wants to set up a surround system in an existing room.
The story, How to Build Your First Home Theater From Nothing, breaks down the components needed and then goes into detail on what you should be looking for in your situation. That could mean staying in budget or choosing the right size screen and speakers for the space.
A word of caution though. Even with the great step-by-step Lifehacker provides, the hook up and calibration is tricky. There are, sadly, countless DIY home theater set ups out there which perform poorly. They may have speaker wires crossed causing out of phase sound. It could be they really don't have a high definition picture on their screen due to improper settings in the equipment.
A home theater isnt cheap, even if it's done by yourself. If it's not working properly it becomes a waste of money. So if you don't think you can handle it let me know.
If you have a question or if I may be of service email me at email@example.com