Sony DAV-X1 Theater System

Pros: Excellent Picture Quality(HDMI input) High Quality build and materials
Cons: Not true surround sound Setup Menu looks outdated

I got it for about $600 which makes the system a lot more reasonable. Not worth $1000 MSRP.

Compared to the Bose 321 the Sony has a higher quality build(nice metals instead of all plastic), tons more inputs(including HDMI) and much cheaper($600 vs $1000 or $1300-gs model). Bose 321 from the store demo sounds like it has better sound than the Sony though(not worth the extra money to me).

The sound is good(not true surround or thundering bass) but it does require you have the right room for it. The room has to be on the small side and you HAVE to be in the center of the two speakers for the best sound.

Radio reception is not the greatest(probably my location) but I just ordered an antenna to fix that(hopefully). I am blown away by the picture quality(above Sony's usually already high standards) when I watch a DVD.

I wanted a small compact 2 speaker system because I have a small apartment and a 23" LCD HDTV . There's not much to choose from in this market but I am happy with my choice.

Pros: Great price, flexibility, HDMI ready
Cons: Different sound levels between inputs, Large speaker cables

I bought this system after Christmas at Circuit City for under $300.
Simple set up - but the speaker cables are on the large size - so if you're thinking of routing them inside anything, be advised the large computer style multi-pin connectors DO NOT come off the cables.
Performance between CDs and DVDs differs, but you can adjust the sub's levels in the on screen menu to make up for it. Note that you must be in DVD function however to make these changes.
The dual HDMI outs are a huge plus for the price.
With a little time and flexibility on speaker placement you can actually make the pseudo surround work quite well. Reminds me of how the smallest theatre sounds in a larger multiplex.
Overall a unique piece of equipment for the price. My salesman told us the reason they are so low right now is under-performance in the market place and the need to get rid of them before a newer, more $ system debuts...