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Compact Home Cinema System Advice Sought


I have a TV in the bedroom but currently no other A/V equipment and would like a compact home entertainment/cinema system. I would like a blueray/upscaling dvd player, virtual surround sound (2.1 speakers?) and i-pod connectivity (I don't ask for much!). I have my i-pod music collection stored on a Western Digital MyBook World NAS so would ideally stream the music rather than go for a dock.

I have looked at and discarded the Roth Alfie (no upscaling), TEAC DR-H300 (not the greatest picture/i-pod connectivity), NAD Viso (pricey if buying speakers and dock). The PS3 (+ speakers) and new JVC NX-BD3 might tick the boxes but I am not sure how compatible they are with Apple lossless files or for that matter whether the NAS can act as a streamer? Are they the answer or are there any other alternatives?