We've got a 36'' widescreen telly in the corner of the room. Its got DD, Digital Surround and Pro Logic surround sound built in but its crap cos of the corner position. Ive never heard a decent surround track, not even the dolby digital demo vids sound good.
We use tannoy m2s on the front.
Our free to view sky is permantly dialed into News 24 though sometimes it flicks over to Coronation Street. Just what big tellys and digital surround is for. We genuinely dont watch anything else, ever! I dont even watch coronation street that often.