Hi Ryan...
just made sure u get those latest model with hdmi output so where u can upscale your DVD movies to at least 720p/1080i.I believe your budget of $500 will get a brand like Sony, samsung etc.
Actually i intend to get those wireless surround type but u still need electrical power for the rear speaker to recieve the signal, anyway this wireless type will cost at least $700.Unless u know how to conceal and hide those wires for the rear speaker,then settle those wire one lor.Philips do come out a new model where the speakers are at the front but claims that u still able to get surround sound by their techology,anyway the system is pricely,cost more than $1.5k.
For now, this is what i done for my "home theater" Using my PS3 that also can play HD bluray disks and on top of that, PS3 can also as a DVD upscaler to 1080p.For 5.1 surround sound, i just connect using optical fibre wire and connected to my old pioneer home theater system which bought 3 years ago.I feel that buying a PS3 is really worth the money if u know how to made used of it.AS u know , stand alone blueray player itself already cost at least $600,By paying the same price for Sony 40G ps3 , it can even used it to play games.. But there is a downside for the DVD playing capabities,it can only play code 3 DVD only and u need to pay for the remote control if u cannot get used of using ps3 controller to navigate the DVD/BD playing menu.