Sub £200 home cinema kits will generally come with a built-in DVD player (which you probably don't need), probably no way to connect the PS3 (which you definitely
do want to do), and sound quality that only rates as "decent" if you are stone deaf
To find something suitable you'll need a shortlist of essential features. You'll need to decide for yourself though what is and is not essential. Here's some info to help you make an informed choice.
Connecting your PS3...
....surround sound from your DVDs needs a digital audio connection via an optical connector (A.K.A. Toslink)
....the best surround sound from your Blu-rays needs a HDMI connection and an amplifier which can decode the HD audio formats: Dolby TrueHD, DTS-HD, and also handle discs with uncompressed PCM. Read
here, but there is also DVD quality surround sound included with most Blu-rays which can be accessed via the optical connection.
Picture connections from the PS3 aren't essential. You can hook up a HDMI direct to the TV for picture and basic stereo sound, and then have an optical connection to the amp for surround sound. If you push the boat out with your budget and go for something with HDMI and HD Audio decoding then you will have some sockets to connect HDMI from the amp to the TV for picture.
So, that's the do's....here's the don'ts.
If you buy a HCS which does have an input on phonos (red & white) or via SCART then you'll be limited to stereo audio from your movies. Most HCS's have some form of ProLogic sound to spread the stereo around all of the speakers, but the effect isn't a patch on the quality you'd get via an optical connections.
Some Panasonic HCS's have an optical connection but don't decode Dolby Digital surround sound or DTS surround sound. Beware!!
...and finally, some recommendations on realistic budgets to get good surround sound without spending the earth...
Sony STRDH500 £139.95 + Yamaha NSP270 speakers (in silver) £119.95 or Yamaha NSP280 speakers (in black) £139.95
This is one of the lowest cost proper AV amps with optical connections for the PS3. You'll get DVD quality surround from this kit
Sony STRDG820 £229.95 + Yamaha NSP270 speakers (in silver) £119.95 or Yamaha NSP280 speakers (in black) £139.95
This is currently one of the lowest cost AV amps HDMI and HD audi decoding. It will handle your DVDs and Blu-rays in the best quality from each format.
All the above are available from Richer Sounds.
www.richersounds.co.uk You could also have a look at Superfi for budget surround systems.
I know both systems are above your budget, but would it be worth buying a HCS kit if you couldn't connect the PS3 and enjoy DVDs and Blu-rays in at least DVD digital surround???