Mini iMac Home Theater Idea

speXedy

Think Different
So after I buy my 20" iMac computer, I am going to focus on making it the center of my basement/bedroom. I live in the basement of my fathers house at the moment (ICK!) but it’s rent free and most of the money I make is mine to keep minus gas, car insurance, and other fun things I do. I don’t make a fortune but I make enough to survive in the college years of my life.
I have always wanted a mini Home Theater in my bedroom, and my room is big enough so I’d have the space. However I really don’t want a flat screen plasma TV at age 20. I’d rather have something a little less expensive. I was thinking about a projector. Would this be a good or bad idea?

So far my ideas were the following products.

20" Intel iMac w/1 or 2gbs of RAM (computer)

EvolutionTV (Capture Video/Audio)

Epson PowerLite S3 LCD Projector
http://www.amazon.com/gp/product/B0009I0634/103-3919150-9300606?v=glance&n=172282
But then I’d need a good sound system, any suggestions of quality, yet affordable surround sound speakers that could hook up to an iMac?
Also with this setup could I use the projector as a main or 2nd monitor for my iMac? That would be kind of cool to use Photoshop on my wall!
Just something I’ve always wanted to do. Any suggestions are welcome. If you think I should use a different product could you suggest your product. Really want I am trying to do with this is as much as possible eliminate my TV and have my iMac be my viewing experience.

 
The projector's resolution would not really be good enough for Photoshop work, I guess. ;) ... At least much worse than the iMac's screen. But for watching videos it's great. I simply use my home stereo, which is a put-together system. Sony Dolby Digital Receiver with some great boxes (left, center, right, left-back, right-back and a subwoofer). Plus the usual. DivX-capable DVD player (cheap nowadays) etc. I think you get good enough sound with such a system.
 
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