I know the feeling... it's taken me 5 years to get a respectible system in our apartment. Although, I'd still be saving if I went with LCD.
I'm running a 60" hitachi rear projection (non-high def), yamaha 7 channel surround, jbl front right/left, bose center, something crappy in the rear (no pun intended),a JBL 150watt 10" sub and a 5 disk dvd player. The rears will be upgraded as funds allow.
It's taken me 5 years to get it where it is today and it really feels/sounds like your at the theatre.
I almost went with a high def, but the glare annoyed me to much from the shiny surface of the screen... but I bought the TV 5 years ago and high def was quite a bit more pricey. I also got a deal on the TV, $1200. (non-sale price was $2400)