I've been riding the upgraditis train for the last 8 years or so on a student budget. Although I don't have tons of money, pretty much all the money that I do manage to save I put towards my modest "home theater" (really a rather small apartment theater). I'm about 60/40 with Movies / Music, and have tried to concentrate on a "music first" type system.

In the last year, I moved into a new apartment with a smaller HT space. This required my selling the Panny AX200 Projector + Carada screen and moving to the 54" plasma. The new apartment also has hardwood floors and all glass walls, so acoustically it's definitely not up to the same level as my last place. When I do want to do more critical music listening, I try and throw around lots of blankets and rugs, which helps a bit. Still, I love the system and it puts a huge smile on my face every time I sit down to listen to a great album.