I will agree with Pete in that JVC and Toshiba offer some of the best values on the market. If you don't go with a Sony Wega, I would probably stick with a JVC. They almost always come out on top for tube picture quality.
If you decide to save your pennies and get the HDTV, I'll let the other guys make the recommendations as I have done no research on the subject to speak of. At least not in terms of finding the best values.
As far as the HT sound system goes, it doesn't take much to exceed the commercial offerings made.
Couple of questions.
Needs? 5.1, 6.1 or 7.1 surround? Most of the middle of the road receivers will have DTS, DD, and at least 5.1 surround sound. One of the best values on the market is still the Outlaw Audio 1050.1. It offers 6.1 surround and an unusually good amplifier (only 65w rms per channel but seems to do better than that). It also has a very simple to use layout.
Budget? How much would you be willing to spend on the 5 or 6 speakers and a subwoofer?
Room size? How big of a room is it going to go into?
SAF? How is the spouse appeal factor? Can you have large speakers, or do they need to remain small and inconspicuous.
BTW, CBM seems to be remaining nuetral in this forum. He is as welcome to be here as anyone else. If he starts making his typical riot enticing posts, he will be dealt with. Until then, I saw nothing wrong with him mentioning that his parents HDTV can be viewed from angles without effecting the picture.