PC to Home theater

Hi everyone

I am trying to set up a Home theater system through my PC. I will use it mainly for DVD, but also listening to some music, and perhaps a game or two here and there.

I have a PII system with 256 Memory.
-(do you think the processor is a bit slow?)

In addition, I am in the process of ordering a Radeon 64 VIVO (since it had hardware DVD decoding, I was hoping to get some of the load off my CPU), and alos a poineer 106C DVD player.
(any other similarily priced DVD player you would recommend that it better than th 106C?)
-(do you think that the Radeon would now support DTS straight throughput or should I instead not install the Radeon software, but something else like powerDVD that does have straight DTS throughput? Would I then be loosing Radeon's hardware DVD decoding and it's advantages of speed and quality?)

I am also planning to upgrade my sound blaster live value to a sound blaster live platinum. I am doing this mainly in order to get the 5.1 output functionality. I am also leaning towards this card because of it's excellent software bundle (my girlfriend could use the card to plug in her keyboard and other music making stuff and use the software to edit...)
-(can I get away with using my current SB live value or should I opt for a 5.1 card for the DD/DTS sound for my speakers?)
-(what are your impressions on Hercules XP, or Philips, or Santa cruise cards?)
-(would I be intruding more distortion by going through a sound card VS a stand alone DVD/Cd player to reciever?)
-(would I be connecting through a optical out from the sound card to the speakers?)

I am planing to somehow connect everyting to a DTS /DD reciever (I am thinking of getting a Yamaha model (5440), but please tell me of any better ones for aournd 300-400 price range.)

I am also planning of getting some JBL speakers (it's been a headache deciding on good quality and value speakers, but I have heard good things about JBL's and am leaning toward N26 for front, N24 for back, N-center and their 10" subwoofer.)
-(any thoughts on any other speakers that might be better for my setup?)
-(are you familiar with the S26' and S38's by JBL? Was thinking of spending some more money and go with S38 front, S26 back, and S center.)
-(do you think that I might be able to mix two different series of the JBL speakers? ie, S26 front, N26 back, S center...?)


So, this is my plan in short. What do you think? Would I be better off just buying a stand alone DVD player and plug it in straight to the reciever or is it better to do what I am planning now? Sorry for the long winded questions, but I am at a impass right now and just don't know what to do... It's very tempting to just get a DVD/reciever/5.1 speakers and set them up seperate from my PC, but I think I might get better quality (not to mention be able to play games using my sound system