New home cinema system required

Time has come to plan the revamp of the lounge (3m x 4.6m) and as new sockets etc are to be installed I have decided to replace my TV with LCD screen and home cinema system.

The LCD is likely to be TX32LXD700. My budget is 5000GBP and I am looking for some ideas, sound and looks high on the agenda. The front two speakers will have to be close to LCD as I will have the two floorstanders from my HIFI approx 1m either side of LCD.  The rear speakers are to be wall mounted.

Also not interested in HD DVD (waiting for the end of the format war). 

Suggestions of systems to be considered for a test or even recommendations from experience would be greatly appreciated.

many thanks

Ray