Home Theatre Set Up In This Age Of Digital Music, How Do People Set Up Home Theatre Systems?

In this age of digital music, how do people set up home theatre systems? - home theatre set up

I want to listen to my iPod, as well as TV, DVD, etc. with a system in my house, I have very high expectations and budget. I just want something that sounds good for the average person in a medium to high volume. What is more important? What makes a good speaker, a good receiver, etc.? I tried to ask in electronic transactions, they will simply sell to more expensive products.