Our Verdict 
We can pick holes in the performance but they're only small, so focus on the price and functionality
For 
HDMI output with 1080p upscaling
loads of functionality including an iPod dock
detailed surround sound
colourful, detailed picture
Against 
Some noise to tricky edges
music is flabby
home cinema sound lacks solidity
Reviewed on

Make no mistake, there's a lot of home cinema kit here for £300.

Panasonic not only provides four tallboy floorstanders, a chunky subwoofer and a centre, but as part of the DVD/CD player main unit there's a fold-out iPod dock, a USB input and an onboard FM tuner. An HDMI output and 1080p video upscaling, plus a digital optical input, completes the package.

Up and running, we use our Award-winning 37in TV, the Panasonic TH-37PX80, and get the system to upscale the DVD content to 720p – closest to the screen's native resolution.

Believable surround soundWatching The Bank Job, the highest compliment we can pay the system is that time flies by, as we're absorbed by what is a second-rate film.

Surround effects are steered confidently, with good integration between the four satellites and a decent level of detail.

More after the break

The centre channel could offer a little more authority to dialogue and the treble does lack a little quality, but all told it's a thoroughly believable surround sound.

Smooth motion and natural coloursThe system's picture does suffer a little from noise around straight edges, and we'd like a bit more insight into deep black levels, but by and large we are again impressed. Colours are natural but vivid, detail levels are decent and motion is smooth.

Switching to the iPod dock – which delivers full functionality via on-screen menus – allows us to just about enjoy some fairly flabby sounds, but, hey, the function's there.

If you're looking to transform your lounge into a cinema on a budget, this is a great value way to do it – the quality can be bettered but for the cash it's hard to grumble.