5.1 system guidance needed

[Squidmaster]

Hi all. I am looking to assemble a 5.1 system to connect to both my computer and a small HDTV. I have no more than $700 to spend, and my goal is to achieve a nice balance between computer gaming, movie watching, and classical-music playing quality. I am far more interested in quality of sound than I am in volume, and I want to be able to mount relatively small speakers on my walls. My space is limited.

Thanks for any recommendations you care to give.

 

[rexter]

Logitech Z5500 with good Sound Card.

When playing movies use S/PDIF.
When playing DVD-Audio or SACD use S/PDIF.
When Playing CD chose whatever best suite your needs.
When Playing Games use analog. and let the EAX works it's best.

If you have extra $$ left. replace the satelite with better one like the one from harman kardon http/www.harmanaudio.com/search_browse/product_detail.asp?urlMaterialNumber=HKS%209&=.

Problem with satelites is that they're not even close to fullrange speaker.
Unless you can find an amplifyer and speaker system for $500.00 and spend the rest of a good sound card.