Being a renter with a modest income and even more modest space to work with means compromises will be made when putting together a decent home theater setup. We've been pretty satisfied with our current setup, which includes an Optoma HD70 720p DLP projector, a 92" Panoview manual pulldown screen, a Yamaha YSP-800 Soundbar, Apple TV and Oppo 971H upscaling DVD player. But we're looking forward to 2010 as the year we move toward a proper 1080p setup with true surround sound.
Let's get it out right from the start that we know our setup is not high end. It was cobbled together on a limited budget and over the stretch of a couple years, afforded by scouring eBay and Craigslist offerings, and jumping upon some notable discounts from the now defunct Circuit City ("Free screen with purchase of projector? Why thank you!"). But the upgrade from a 40" LCD display to a 92" screen has been a game changer in our household where movies, sports broadcasts, and the occasional video game play a part in our lives. Once you go truly large, most LCD and plasma displays just don't cut it for the cinephile looking for a cinema-like experience.
As noted recently in past posts, I made a decision to transition away from the Apple TV as our home media device, adopting the PS3 slim as the new centerpiece to our home theater setup. Unfortunately, as is often the case, introducing an upgrade sets off a domino effect, igniting a desire to upgrade everything else in relation to the newest component. The limitations of our 720p display options (both the projector and LCD display) are evident when playing Blu-ray or PS3 games now since transitioning from the less information rich DSS HD broadcast sources, the Apple TV's quasi-HD content and an upscaling DVD player. The simulated surround sound of the Yamaha now doesn't seem sufficient for our discerning ears. Yes, it's bad news in regards to our bank account, this coming 2010.
Here's what I hope to upgrade over the next year:
Upgrade to a 1080p projector: The 1080p category of projectors is the most competitive segment in home theater today, with a handful of very capable 1080p projectors available at a once unthinkable price point. Fortunately or unfortunately, depending on your perspective, we have room dimension limitations that make our upgrade options an abbreviated one. First there's pricing, so sub $1000 is definitely our range. Second, our 12' width room requires a projector that can fill up the 92" screen with a fairly short throw. Last, the current ceiling mount is pushed back as far as it can go, so the location dictates the new projector must have dimensions and weight close or smaller compared to the current HD70 unit.
Basically we've got three choices: the Vivitek's H1080FD, the Optoma HD20, or the BenQ W1000, all three DLP units. We've loved our Optoma HD70, so the HD20 was our first choice. But the consensus at this time from projector junkies seem to lean toward the Vivitek's superior contrast and color reproduction. 1800 ANSI brightness and a 4000:1 contrast are more than capable for our viewing needs. Also, the quiet characteristic of the H1080FD is highly desirable when the projector will sit right above our heads.
Our goal: Vivitek H1080FD DLP projector $999
True 5.1 Home Theater System: here's where I'm sure people will want to chime in, as my choice may ruffle the feathers of those more serious about their home theater audio. The current candy bar YSP-800 does a decent job of reflecting sound off the walls for a quasi-surround effect, but comparing to the full sized Nakamichi surround system we setup at our mom's home, there's no comparison. The YSP-800 was chosen not only for budget, but because it's a compact, self contained unit which doesn't require girlfriend-bothering, decor ruining wiring.
We want to continue without having to run wires across our small studio apartment, yet upgrade to a better sound experience. Home Theater in a Box is often chastised as an inferior route, and in reality, it is. So with that out of the way, we still think people living in small spaces can enjoy the home theater experience with a decent system that only has to service a small apartment studio space like our own, with the hopes of choosing a system that is both audibly enjoyable and visual invisible.
Our requirements for a small space, decor-friendly and affordable 5.1 audio system was best fit by the specifications of the Sony HT-IS100 BRAVIA Theater Micro System. The 5.1 channel home theater system notably offers the upgrade option of wireless speakers and HDMI connectivity; the speakers themselves are atomic particles compared to even most mini home theater in a box systems, making them discrete additions to any room, only noticed when turning on the system (we only wished we could get these in white to blend into our walls). And at under $350 for a full 5.1 system (minus additional wireless transmitter and receiver), this may be our first upgrade purchase.
Our goal: Sony HT-IS100 BRAVIA Theater Micro System $348
Wrangle in our Remote Control Issue: the death of our volume button on our Logitech 880 remote spelled doom for us in regards to our K.I.S.S. (keep it simple, stupid) philosophy for remotes. Despite our frustration of the possible button defect on our remote (an issue noted by others online of the very same button), we still believe Logitech makes the best consumer priced programmable remotes. The latest Logitech Harmony One is the heir apparent to the 880/890 models, improving and upgrading features, adding touchscreen interface, a rechargeable lithium-ion battery and a GUI that actually operates very easily. And importantly, they've redesigned the buttons for both easier use and more mechanically sound endurance over the lifetime of being pressed (aka mashed). And we already know setup and use using Logitech's Windows and OS X web remote programming application is very easy, a category we think other manufacturer's remotes still lag. This should be the easiest upgrade to budget and integrate.
Our goal: Logitech Harmony One Remote $179-199
Other Eventual Upgrades:
Keeping within budget means a lot of compromise, and there are several components we'd eventually like to upgrade to supplement our choices above.
Living With Less Wires and Cables: this is unlikely, but after testing out the Philips Wireless HDTV Link, I'm now convinced we need to find a way to be able to eventually integrate full 1080p content without wires. At $800, this isn't yet priced for consumer-level consumption, including us, but we'll be keeping a close eye on how the pricing eventually drops.
Upgrading the Screen: Eventually we'd like to replace the 92" Panoview screen, as the edges are a bit curled and the reflective quality not optimized for the eventual introduction (we hope) of the Vivitek unit. We're taking Sound & Vision Magazine's recommendation and eyeing the Elite Screens 1.0 CineGrey, which comes in at $584, which is a bit rich for our blood, making this a "later" purchase.
Controlling Ambient Light: our apartment provides us with a fantastic view of Silver Lake and the surrounding Hollywood Hills. The sunsets are truly glorious and better than even the most brilliant 1080p image. Bu it also results in a lot ambient light during the day, making light control an issue when using the projector (thus, we've kept the Samsung LCD for daytime use). I'd love to upgrade to better light blocking roll down shades throughout the apartment, purchasing a few more custom made roll shades from JustBlinds, so we can extend use into day time hours.
We're looking at about $1,600-$1,700 in total upgrades if we go this route of options (factoring in the optional EZW-T100 S-AIR Ready Transmitter and AIR-SA10 Air Station receiver/speaker for wireless surround speakers), manageable if tackled piece by piece or if Santa brings us a nice fat Christmas bonus. The likely route is to upgrade sound first, then remote, then finally the projector. We'll report back as we make these baby steps forward to upgrading our system now that our plan has been set.
But in the meantime, we'd love to hear from you how you'd upgrade with a similar budget and a small space.

Sprout Side Table
I really enjoyed this well-thought-out post. I am kind of bummed to hear that the Yamaha sound bar isn't doing it for you, as I've been trying to get my husband to go for it after years of living with his clunky enormous Onkyo speakers (at least I painted them white and put some white fabric on the fronts).
We actually have the same TV as you do too--and ours is beginning to go bad. I can't believe there are no white televisions on the market in that size... so we're actually considering paying the $600 for a repair in lieu of replacing it.
These electronics manufacturers need to realize that a lot of people would like to buy a white model that would blend in with their decor a bit better than all this clunky black plastic!
RKN: the Yamaha speaker served us well now for several years. It's actually a solution I've recommended to others who needed a small space solution; they've since released updated models with improved simulated surround, so you might want to invite your husband to a showroom and see if he likes it well enough to ditch the larger speakers (or at least relegate them to another room). If the dimensions and layout of your room is right, these Yamaha speakers do a commendable job of simulating a 5.1 experience.
I love that you painted your husband's older speakers to blend into the walls; I'd quite like to see how they turned out.
The white Samsung LN-S4052D was purchased partially to ease my better half into an HD display, and because it doesn't intrude decor-wise, she's always liked it. And I totally agree about wishing there were more white displays. Of course the reasoning for black is for the frame to blend away unobtrusively while viewing, though conversely it becomes more glaring evident when the set is not being watched in most decor schemes. Thus, I quite love being able to hide away the screen used with the projector!
If anything this year it's consolidate my DVD recorder and VCR into one new compact unit then get a BD player and perhaps a new remote such as the one you listed to consolidate all of my various remotes but that's it.
In June 2008, I replaced the old 22 YO Mitsubishi 27" TV with a new Samsung 32" 720p TV that I like a lot and eventually I'll deal with the audio but for now, other things are more important that I need to purchase.
While I admire your detailed plan of attack, the biggest obstacle you face is getting over the need for surround speakers. Yes, there is no doubt a 5,6, or 7.1 system will convey the movie experience better than a sound bar or stereo configuration, but in order for this to be a reality, the speakers must be GOOD. This is not a personal putdown, but a crappy 5.1 Sony speaker system will never sound as good as a decent pair of bookshelf speakers. It's true the Sony system will give you the sensation of surround sound, something even the best stereo setup can not achieve, however the sonic fidelity is completely lacking with Sony. Tiny plastic speakers and a sub will not match the level of sonic performance that can be found in a speaker from a reputable company. (To be fair, Sony makes great TVs and Blu-ray players but is not really a contender in the speaker category)
I promise you, if you go to a non-chain store establishment, and demo a comparison between good bookshelf speaker and Sony setup, you will chance your mind in a heartbeat. Now, it's not to say you can't expand on a home theater in stereo. When it comes to your budget, start with quality over quantity and slowly work your way into more speakers (Hopefully from the same manufacturer) If you're concerned about aesthetics, the audio industry does provide speakers with musical merit that are not just large boxy eye sores. Also consider the fact that your music will sound much better as well. Ballpark Price Examples: Cambridge Audio, Audioengine, PSB, and Paradigm all have great value and sound. As a audio industry professional, I sincerely hope this helps. Enjoy!
Swampfox_12: I appreciate the recommendations! But you seem to subtract out the issue of cost out of the equation to the extent we're now discussing a different demographic of customer; even the most budget minded non-HTIB solution is 2-3x more than what I can afford even over time (I'm budgeting a "crappy" system over the span of a year!) and would require a great deal more space than I have in our 630 sq. ft. apartment. I have my own dream wish list of moderate cost systems, but I am saving this for the day we move to a larger space that can accommodate for these type of features. In a sense, we're discussing two different demographics: consumer vs. prosumer audiophile. Thus, I noted my obvious compromise from the start, making note of consideration a strict budget, limited space and a very suspicious girlfriend.
Also, there's an issue of aesthetics for a renter. Although ideally I would love a home theater room where speakers could be architecturally integrated into a space (aka, not be obvious to anyone who doesn't care to see speakers or AV equipment), the reality of living in a small rental space is maximizing home entertainment features in accordance to the limitations of space. Upon researching the likes of Cambridge Audio, Hsu or Paradigm, all which offer excellent performance in their price/category, aesthetically, they're too obvious in such a small space where we've taken great care to not overemphasize the amount of gear which is already within the room (this is subjective, but I think most speaker manufacturers obviously let function dictate form, but sometimes to the point they're intrusive). I am trying to avoid adding any separate components to the mix because of space considerations, and this was the reason the Yamaha speaker was initially chosen, since the B&O system's unit is already filled up.
I'd actually love to invite and challenge you to put a couple configurations with affordable pricing for the small space renter, factoring in invisible footprint (speakers, wires, components) partnered with quality of sound. As you note, an industry professional can always aid a customer in making smarter choices!
If you end up selling your old projector in the next 6 months, I'd buy it. And in case that doesn't make you feel good enough, we're still attempting to put together our first home theatre system! Than again, we just got our first TV last christmas. :)
Consider the challenge accepted. Should be fun.
@Swampfox_12 & @gregory:
I want in on that action! Give a price range and a required set of pieces.
RJHD3: I've contacted Swampfox_12 and the parameters are: lowest price home theater system for a small space from the ground zero. So think everything one would need at the lowest price you could piece together. This could be a fun series of posts!
Groovy. That's a bit different than just upgrade path for your situation. Entertaining challenge.
Very curious to see what Swamfox and RJHD3 come up with! Will their suggestions be posted here?
nyinsf: yeah, as soon as I hear back from either, we'll see if we can update here or create a whole new post. Love seeing readers get involved...you're our best resource :)
Anything from Swampfox_12 or RJHD3 yet? My wife and I are in an apartment right now; and with our 30 in Samsung CRT slowly going out and the 2.1 computer speakers I jerry-rigged to it fading, I plan on upgrading. Any information would be greatly appreciated.
As a side note: I have a friend who has some older Paradigms and they still have amazing sound and clarity. Visually obtrusive or not, I'd say they're worth it.
those are Beovox/ Bang and olufsen speakers, they are good, never get rid of them! youll have fo pay $8,000 a pair to get sound that will equal those!