A beginners look into the big ocean of Surround Sound

[Blu Ray]

Hi guys, I decided to just make a little thread about a first time (or a newer) person interested in home theater. I know there are tons of posts all over here, but I kinda want to get an idea of what everyone's personal suggestions starting out with a home theater system for the first time. I will pick some that I like, and throw them in place of this so people have an idea of what to get with their budget. I want some focus on music, and some on movies.

Some of us are completely new to this, so layman's terms are necessary for this thread.

Most importantly, include what you think they should purchase first, and what they would probably be able to hold off on for now. Say someone has a budget and they come here thinking "I have 500 bucks, what should I get"? What would you tell them to get?

Please make your posts informative, with info about why you should spend more on a certain part first, or why someone would or wouldn't want an all in 1 box system. Since everyone's setup does vary slightly, let's make the suggestions as "universally friendly" as possible, mention if your ideal starter is more worthy of movies or music, or any other special needs such as "better for a smaller room" or "you can play this system so loud you would shatter glass".

Why don't we say price points of:

~$300
~$500
~$1000
~$1500

An example of what I was hoping for would be -

"$699.99"
"You get 3.1 Surround from X company"
"This will be good for a person who is wanting to upgrade later, but wants to hear the roaring sounds of the theater in their living room, with the option to add more later".
"This style sticks out more, and may not be effective in a tight living space, especially if you upgrade".

OR

(Company stands for - XXXX, maybe even link to a purchase page)

"$1,400"
"Receiver - XXXX for $199.99"
"Front L and R - XXXX for 399.99"
"Sub - XXXX for 299.99"
"Surround's - XXXX for 299.99"
"Center - XXXX for 199.99"
"Description goes here on what it will sound like in a certain setup".


Help me and others browsing this find the perfect system for their smaller, or larger budget to start a home theater!