Obviously budget is another consideration and this will dictate which equipment you buy initially and what you save for another day. As a bare minimum you’ll want a DVD player, widescreen television, and a surround sound audio amplifier and speakers. We’d recommend opting for a DVD recorder like this one from Phillips, or this from Panasonic. They’re obviously more expensive than a DVD player, but will give you much greater flexibility. And don’t forget to budget for cabling, its a very important part of installing a home theatre and one that’s often overlooked.
You’ll also want to think about the interior design of a dedicated home theater room and of course the seating is all important. You’re going to spend hours and hours watching movies and the last thing you need is uncomfortable seats.