Thanks for the reply. Yes, i think i would just get something to the cheap Wal-mart speakers. I like the "out of a box, ready to go" speaker setups. They are very reasonably priced, sound good enough to my ears, and are easy to set-up. I might even pay a bit more and get something with embedded dolby 5.1 surround sound. It will make all the difference, and will sound like 'true' 5.1 surround sound, which is needed for games like Doom III. You could spend thousands of dollars for a seperate receiver/amplifier and purchase top end speakers but that is really not what i need. It is only going in my bedroom, space is limited, and my budget is limited aswell. The more expensive systems are better suited for family sized rooms and people seeking pure cinematic audio reproduction. I will just be using it for casual gaming and to watch movies on occasionally. So that answers my original question - That the xbox does not provide a 5.1 dolby output, and you have to buy the seperate audio hardware for it work.