LG HTB964TZ has HDMI in and out, and its a 5.1 system with really sweet sound. It shld be priced to your budget of RM2500.00.

If you are looking at the Pioneer 787, then you can send the video via HDMI to yr LCD, while sending the audio out via Toslink (fibre optic cable) to the 787, and the 787 shld be in the range of RM2,000.

Both systems are good HTiB, and shld fit yr room nicely for movie, music and games. You will not be disappointed with these sets.

I would stay away from receivers and 2.0 speakers set given the size of your "small" room, and perhaps you shld build yr system (AVR + decent speakers) when you move to a bigger unit with more space. But thats my personal views only.

Aiman bro, didnt read the lossless audio part, and yeah, optical wont do.

Kobe, the Yammy V465 is pretty good, 4 hdmi in/1 out and lossless audio capable, and is pretty powerful to drive my floorstander 5.1 speakers.

The LG BD HTiB is sounds pretty good too, but i have not seen the images from the BD player. Will review the LG if you do get it.