Hi, I was/am in the same boat. College kid with 3-4 years left
but I have spent the whole summer working and shopping home theater aspects for my first apartment. I had a bigger budget but I needed to get a TV, A/V Receiver, DVD player, Speakers plus the necessary cables. I started with a 2.1 system as well so here is my two cents...
If you are just wanting an Up converting player, I would shop for deals at BB, CC, and online. You can find a respected brand like Phillips, Toshiba from $50-$70. This would give you another $100-$150 toward speakers, which would allow you to get a little more future proof A/V receiver, center channel, and/or sub. This would give you more high quality audio right now plus the ability to add more.
But if you are wanting to spend $200 on a player I would suggest the HD-A2 (which can be had around $240) and is considered by many to be one of the best upscaling players out plus the HD DVD capability. Just a thought.
Here are some links/scenarios to check out:
1.
X-LS Bookshelves ($219),
X-CS Center ($139),
Onkyo 604 (This will give you HDMI, 7.1, etc) ($299),
1080i Philips Upscaling DVD Player ($65) or
1080p Philips Upscaling DVD Player ($70). I would leave around $75 for shipping and cables.
Total: $802
2.
X-LS Bookshelves ($219),
Onkyo 604 (This will give you HDMI, 7.1, etc) ($299),
HD-A2 ($245) There are 10% coupons available that will make it less. Plus $50 Shipping/Cables
Total: $813
3.
X-LS Bookshelves ($219),
X-Sub ($199),
Onkyo 604 (This will give you HDMI, 7.1, etc) ($299),
1080i Philips Upscaling DVD Player ($65) or
1080p Philips Upscaling DVD Player ($70). I would leave around $75 for shipping and cables.
Total: $857
I know they are $100-$150 but if you could get the extra $$$ you would really benefit from it.
Hope This Helps.
P.S. Which TV do you have?