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Build an HTPC, home theater PC.More than you would ever want to know is here: http://www.avsforum.com/avs-vb/forumdisplay.php?s=5d4baefb25c2028bf9944e02f4e0b861&f=26
That's pretty much what I have. My PC is connected to my LCD TV and my stereo (which IS capable of surround sound) I stream movies and such from my PC to my TV& Stereo. It's quite easy once you have the right video output and cabling. Amazon is your friend when it comes to cables, too!! I got a 25 ft HDMI cable for some $7. The stores charge WAY more !!
When we first switched back to Comcast they wanted $85 for a 6ft HDMI cable. WTF?