I would avoid HTIB, and not just because of the sound (which is usually terrible for the high price you are paying). They are a lot less flexible when compared to buying components. I know most of you own a lot of crap that hooks up to your tv, so buy something that can handle all of it and switch it with a remote, so you don't have to get your butt off the couch, like me. If you really need more inputs, you can buy a switcher to handle all your game systems, which is what I did.
Keep an eye on frys, and do what I did for my game systems:
Onkyo receiver - TXSR304S - Currently $150, but often goes down to $100
Polk bookshelf speakers - I got the R30s at $40/pair, but I think those were replaced with the R150s, which are currently $50/pair, but often go on sale.
Polk center - current model is csi25, which can be had for $50. $100 right now.
Subwoofer - doesn't really matter what you get, just find something cheap that has decent sound.
So you can get a 5.1 component system for $230 plus the cost of a sub (and tax and shipping, if applicable). I paid $60 for my Inifinity 8" on clearance at Circuit City. You can even wait on the center, surrounds, and sub, since it will work fine without them, and a ton of games out do not support 5.1. This will give you MUCH better sound than your average HTIB, and you can change any part you want in the future. The speakers sound great, and the receiver is very nice for $100.
Just make sure your non-subwoofer speakers are the same brand/line so they are acuostically matched. This is not an audiophile thing. If you mix and match, it sounds like total crap most of the time.