Pardon my ignorancem, what does a Home Theatre consist of?

[Hellhog]

As the title states, I'm just getting into this whole Home Theatre understanding. (Obviuosly I can't afford the good stuff yet, baby steps, upgrade over time)

I've been doing a lot of searching on this sight trying to understand everything. I haven't seen anything definitive on the sight so I'm doing this as a reasurance and understanding. The part that confuses me the most is receivers, if I understand it right the speakers connect directly to the receiver.


Just fill in where I'm missing or correct me where I am wrong and please inform of alternatives (excuse my ignorance):


For the ultimate HD Audio/Video Home Theatre System-

1080p at least 60hz TV (for gaming and movies) (HDMI connect from receiver)
Surround Sound System (2 front, 2 side, 2 rear, Sub, Center Speakers)
A/V 7.1 Channel Blu-Ray Receiver that can decode LPCM/Dolby TrueHD/DTS-HD MA
PS3/Xbox 360 Gaming System (HDMI connect to receiver)
Blu-Ray Player/DVD Upconverter (HDMI connect to receiver)
HD Cable/Satellite TV source (HDMI connect to receiver)