I've almost finished my room in terms of home entertainment. The last component is a speaker system, but am totally clueless in this department. I would like a system with surround sound, and to be able to connect everything I currently have.

This is my setup:

Samsung LE40R74
Sky HD
Xbox 360
Nintendo Wii
Pioneer 636D (needs replacing!)

I have about £500-700 to spend. What are my options? Cables etc..?

P.S. I don't have much space for "big" speakers for the rear.

Perhaps the Sony STRDA1200ES , or something similar might be a good place to start. I suggest this one, purely as it seems to be terrific value, and its had some really good reviews.

Add to it something along the lines of the Tannoy EFX5.1 speaker package, and you've still got a bit of your budget left for some decent cabling to hitch it all together.

I'd strongly advise you listen to any prospective purchase before you part with your hard earned cash. Remember, trust your own ears, its you who has to listen to it for a number of years to come.