60 inch 1080p Panasonic viera plasma at a 6 or 7 foot viewing distance (we have a tiny apartment)

PS3 with stereo headphones when alone or the built in tv speakers when my wife is there too.

No surround (yet), but I live in a tiny apartment right now & it just seems impractical. I wouldn't be able to have permanent speaker installations which would drive me (& especially the wife) nuts.

My dream setup would be a high end projector on a 120 inch or bigger screen with a nice 7.1 sound system. In a custom home theater with a very vintage/art-deco movie theater inspired look.