Well, I'm new and this is my first post, I am currently in the process of moving so my setup is right now in my current bedroom before I move to Washington, not the greatest placement of it, but I managed to piece together the whole thing for a little under $2,000 including cables. It's only packed into this 12X10 room because I couldn't possibly wait 2 more weeks to play with all my new toys... I've been doing car audio for a while, and this is my first true setup for home that I've ever owned, and I'm quite happy with it.
First for picture I have an Optoma DX617 DLP Projector currently with a component line in from a PS3 and a Comcast Cable box, as well as a computer VGA attached. All automatically switching when I move the input on the receiver.
For sound, I have an older receiver, about 9 years old, but it's a good one. A Yamaha HTR-5250.
I also have a Panasonic Technics receiver lying around that I use to amplify a seperate channel outside. For surround speakers (L,R back) I have Acoustic Research HD510 System that also includes the subwoofer which is a 150 watt heavy 10" beast that sits like an ottoman.
As for the screen, it's a 74X74 (about 6x6ft) screen that I have hung directly on the wall, and is a very solid screen. The projector is about 12 feet away, so I actually had to use the zoom to decrease the image size to work right. When I move this into an actual room I may get a larger screen. The projector is rather clear and allows a 1080i broadcast from my PS3 and Cable box.