I am finally moving out of my dorm room into an apartment and I am interested in purchasing some sort of home theatre system that will work with my xbox. But since Im not too updated on what would be good, Im asking all you xbox addicts out there what is needed.

TV: I don't know if I can afford a HDTV but is it worth buying a television with the S-Video jack for improved graphics. Does utilizing this S-Video make a difference? And would a HDTV be worth its money?

Sound: I honestly don't know much about receivers so Im hoping some of you can help me out on this one. What in general do receivers do? Do I need one that supports dolby digital? 5.1? or what.

Other than buying speakers for the receiver, what else is needed to take advantage of all the xbox's capabilities.