Home theater system

I'm trying to build a home theater system. I have two options. First is to use a DVD player with a A/V receiver connected to BOSE speakers. Second option is that I can use my PC to act as a theater system. For example, I can connect the DVD player to MegaWorks 510D by Cambridge SoundWorks speaker system, which includes a decoder (I guess and the best 5.1 speaker right now) and can drop the idea of purchasing a A/V receiver and separate speakers. In this case, I just have to invest one time for the speakers and all and I can also get good computer music too, apart from getting good movie sound and all.

I don't have much idea about this second option is a right thing to do or not. Any comments please?

I have been down this road already. I have the Cambridge Soundworks 5.1 system. It is not very good. I bought it about 2 years ago and compared to the sound of other computer speakers it was great. But it's overpriced for the performance that you get. I think a real cheap receiver with 5.1 decoder and some inexpensive bookshelf speakers would make a much better system. And as far as getting digital sound out of your computer, only the newer sound blaster audigy and better, and a couple of other higher end cards really give you decent surround sound. The many "theater in a box" solutions that are available sound just as good or better, for less money.