RCA RTD316Wi Home Theater System

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'm not sure how popular this will be with any of you guys, because it's not a very powerful system, but if for some reason you're looking for a smaller cheap surround sound system, this could do the trick for you. 

It could work well for a playroom or basement where you don't need a lot of power, but would still like surround sound. The best part? You're not paying too much for it. You're paying for what you're getting, it's only $150 (available on Amazon.com)

Here's what CyberTheater had to say:

The RCA RTD316Wi is a two hundred fifty watt, 5.1 channel home theater system that offers up an included DVD player, a subwoofer, an iPod / iPhone dock that will recharge your Apple gear in question (it’s also compatible with a whole host of models: the iPod nano in 1G, 2G, 3G, and 4G versions; iPod classic 5G, 5.5G, and 6G; iPod touch 1G and 2G; iPhone 1G, 3G, and 3GS as long as it’s in airplane mode), HDMI output (which will actually work with your iPod video too, and upscale your DVDs), optical audio input, Dolby Digital Surround decoder, rear auxiliary audio connection, component and composite outputs, remote controls, and radio antennas so you can pick up regular radio broadcasts as well.