Wow, thank you for all the input. Rexter, I like the idea of building my own. It's a dorm room after all; it does not need to be pretty. In fact, it may be better value.
I also neglected to look into used systems on Ebay, so I will get started on that.
I found this system on Amazon: Onkyo HT-S3300 5.1-Channel. It looks to be ideal. What do you guys think?http://tinyurl.com/34c8fb8