I have recently built my dream living room, and at a semi-reasonable cost. There are a number of components to this setup, each itemized below:
TV and Monitor
52″ LG LCD TV w/ 120hz – $2000
24″ LG LCD Monitor – $400
These being the primary piece of this setup, its important not to cheap out. You want, at a minimum, something capable of displaying 1080p resolution; optimal for watching Blurays in all their glory, and working on a computer desktop without giving yourself a migraine. For the TV you want something with ample HDMI inputs (3 or 4) and optical audio out to connect to the surround system. The computer monitor should have DVI/HDMI input.
Desktop Computer System
HP Pavilion a6752f – $850
I managed to get this PC from FutureShop for under 1k. With some tinkering and tweaking I got it set up with dual boot running Windows Vista and Mac OS X Leopard (nearly perfectly, see below link). The system needs, at a minimum, dual DVI display ports. This particular system comes with 1 HDMI output which also sends digital audio along with the video. This helps in making a clean wiring setup, but isnt necessary.
Display port 1 should go from computer to your primary monitor. In my case I’m using my 52″ TV as my primary desktop, via HDMI cable. My secondary 24″ monitor is connected via DVI->HDMI cable.
To install OS X on a PC check out http://www.osx86project.org/
Surround System
LG Surround System – $400
I managed to pick up a floor model surround system from FutureShop for around 400, taxes in. This was a Dolby Prologic system with tower speakers and a sub. The main feature I was looking for in this was an optical audio input, which is fed in from the TV. That way all your digital sources going to the TV (Computer, Digital Cable, PS3) will be fed to your speakers the way they were meant to be heard.
Gaming System / BluRay Player
Playstation 3 – $400
The PS3 system comes in a t a reasonable price for a great BluRay player, and a sweet gaming system to boot. I highly recommend this as a BluRay source, but other cheaper alternatives are available. This is connected via HDMI to the TV.
Accessories
Logitech Wireless Keyboard/Mouse – $50
Logitech Harmony Remote – $110
The wireless keyboard and mouse combo make it comfortable to sit back on the couch and enjoy browsing / chatting the web.
Also integral to operating all these devices you will need a universal remote such as the Logitech Harmony series of remotes. With this you can tweak and customize ‘activities’ using Logitech’s proprietary software and upload your setting to your remote via USB. Every device in this setup can now be controlled using this remote.
Couch & Table
EQ3 Bebel Queen Sleeper – $1000
Nestings Coffee Table – $400
And of course the best part about the living room is the couch. I found a great deal with EQ3 downtown for the ‘Bebel’ sofa. This is a deep-set suede couch with a queen pull-out bed; includes big comfy pillows. It’s very important the couch is as comfy as possible, or you’ll just get miserable.
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FINAL COST: ~$5610
As of today the Blue Jays are the best ball club in the American League, second in the MLB only to the LA Dodgers. Many explanations can be offered as to why the Jays are doing so good this year, whether it be our young sluggers Aaron Hill and Travis Snider, or our impeccable pitching staff, half of which are on the DL. The true explanation always seems to lead back to proper leadership and mentorship (see my blog post on 
