Re: My ultimate HD theatre
It gets more complex than that I'm afraid.
You'll need what's called a "receiver" which is like a hub for all your audio and video I/O.
Now, here's the thing. All in all, you'll get decent picture and sound quality from a HTPC. It's a great way to save money on cost because you're HTPC is acting as the receiver, movie player, etc so you can run everything into it. HTPC is going to be the best bang for your buck.
But if you want the "Ultimate HD theatre" system, you'll need to buy some high quality speakers, a receiver capable of powering them, a projector, and a standalone player.
It all depends on what you're willing to spend and what you want the system to do.