I have a Q-AV system from Q Acoustics (Q-AV) connected to an Onkyo AV Amp and matched to a 42" plasma screen. I don't have the largest room, but the sound separation is incredible, with definition and clarity to match. Bigger and more expensive systems are better, but for $1000 or so it was worth it.

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http://www.dwell.com/products/q-speakers.html these are good looking and sound pretty good.

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