Maxie...it really depends on your expectations and budget.
If you are wanting to just improve on your TV's current sound output, this will be superior and may suffice for you.
On the other hand, this wont give you a movie theater experience which some people come to expect from a home theater. What do you expect from those tiny speakers? To get anything remotely close to this though, you will need to spend closer to $600+ -- and that's only for speakers and receiver.
My experience with Philips HT systems hasn't been very good. After a year, the unit lost power loading a dvd (which was then stuck inside) and never worked again. I removed the cover, checked the fuse (good) and retreived my dvd. Customer support was no help and Philips has no repair facilities to send it to. So, if you have a failure, it is yours and you now have a new paperweight. After extensive research on various sites, I've found a lot of hits for loss of power (to never return) and listings on Ebay for the speakers with defective dvd/amp. Rather than spend more money for the same type of trouble, I'll wait for a different brand.
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