save your cash and do it right. you can get a decent speaker package from jbl, like the scs200.7 for like $250-300 and a 7.1 receiver for like $2-300. That is pretty bare bones, but the smaller the speakers, the tinnier sound they make. Small subs, little bass. To do it right, you will drop around $1500 at least for the speakers in a 5.1, that will wow the pants off of any CAG. Polk has some sweet setups for cheap $$$ and outpost.com usually offers their entry level tower speakers for around $119 shipped a pair. They are refurb. drivers, but its no big deal, less break in for you. Two pair, a cheap center channel that is the same size driver as the towers, a cheap sub, you can do that for $600 and then a swwet used receiver.
Forget about the upconvert. dvd. if you get a ps3, it will do it anyway. a scaler for all units is best. it will upconvert your SNES. but you realy dont need an upconverter. if you have an HD TV, the shitty scaler in the DVD player will get downsized, upconverted, then downsized again to fit the native resolution of the TV anyway. thats just how they work. So use component cables on a DVD to your HDTV, it is a marginal difference at best from a DVD that upconverts. Dont belive me, check out avsforum.com or HT magazine blogs from the guy who does these reviews. he is ISF certified, CEDIA certified, and CTS certified. the dude is an AV guru and makes us all looking like
.
If you cant do it now, save your cash if you really want the set up. Stash $50/ week, month, what ever, then do it right. Thats what i did and i also did it for my road bike. It will be worth it in the long run and you will have a setup you can own and be PROUD to listen to and showoff for years to come.
Noone ever says, "hey, come listen to this sweet trash in the box i got from Wal-Trash for $79!!!"
Do it right man, your ears will thank you. PM me for questions, ill point you so some sites for cheap seperates if you really want this asap.