Looking for a way to rival your local movie house and bring high tech to your home this holiday season and beyond? A good home theater may be just the ticket.

Buying a home theater this holiday season can be a smart purchase: it's an investment in your home, your lifestyle, and your family. What better way to relax with friends and family than with a home theater system, with a large screen television, DVD player, surround sound speakers, and more?

Home theaters can range from an elaborate room with a large screen and rows of luxurious seats to simply having a nice television connected to great speakers. While many home theaters have basic components such as televisions, DVD players, and surround sound speakers, there are many ways in which to configure a specific home theater. Some home theater packages include five to six speakers that include a center speaker, four surround speakers, a Subwoofer, and a receiver. What is prepackaged by the manufacturer may not be exactly be what you want, so it's up to you to build your own home theater system. Here's how:

First, it's best to define your  budget. Decide how much you want to spend. You can decide to buy a home theater-in-a-box for $200 to $300, or you can spend several thousand dollars. And there are many options in between.

The television in your home theater will be the focal point of the room, and its quality will make or break how well your system replicates a true theater experience. If it's size you're looking for, but you don't want to break the bank, consider a rear-projection TV. The TVs have a large, flat, plastic screen (42 inches to 65 inches) with three tubes that project colored light onto a mirror that reflects on the screen. It gives you a clear, bright picture with good color, and generally costs $999 to $2,999. However, rear-projection TVs are at least 30-inches deep and can stand as tall as 5 feet, so you'll need the space.

If you don't have the space for a rear-projection TV but still want superior picture quality, consider an LCD or plasma TV. The biggest difference here is size—you will find that LCD TVs typically only go as large as 40-42 inches while plasma TVs were originally designed to replace large TVs and dominate the market for screens 42 inches and above. Plasma TVs are considered the best option, with a thin profile (less than 6 inches thick), and a beautiful picture with exceptional definition and contrast. Both can be hung on a wall or mounted on a pedestal. Plasma screens range in size from 35 inches to 70 inches, and will cost anywhere between $2,499 to $12,999. LCD TVs cost anywhere between $600 and $4,000. One important thing to remember: if you purchase a high-definition TV, you need to subscribe to high-definition cable service, which can cost $40 or more per month, depending upon where you live.

A good home theater will also include a DVD player, and perhaps a DVD recorder. Many people include CD players in their home theater systems as well. Prices for basic DVD players range from $50 to $150, and they can read music CDs. Some can play MP3 music, and the high-end models can also play DVD-Audio or Super Audio CDs, which are high-resolution, multichannel audio formats. Those generally sell for $300 or more.

Once you have decided on your TV and DVD player, next decide on your receiver, which will also determine the type of speakers you will buy and how many. The receiver you select will also help you determine whether you need to invest in a Subwoofer, which can run anywhere from $600 to $1,500.

But most home theater systems have 5 to 7 speakers, including a center channel for voices (dialog), two front speakers that will serve as your stereo speakers (front left and right), two rear speakers that help with surround sound effect, and a Subwoofer to give extra bass. How much do you spend? It's ultimately up to you, but electronics retailer Tweeter recommends that you take what you have budgeted for your entire sound system and spend half that amount on your speakers.

Component cables are important when putting together a home theater system. Most manufacturer cables do the job but they don't go that extra mile. Instead, high-performance cables help ensure the quality of the signals as they travel through your system. Most high quality audio/video cables are gold plated to provide the highest quality connection. You'll also want to consider getting audio/video plug-ins, which are important for hooking up more than one appliance (your VCR, DVD player, or stereo system). Find out how many there are and where they are located. Most are in the lower front right corner, which gives you easier access, but makes it more difficult in hiding wires. Higher-end TVs usually have A/V jacks in both the front and the back.

A home theater can do a remarkable job of mimicking the multiplex experience. DVD players and newer televisions can produce detailed high-resolution pictures, offering realistic portrayals of everything from the largest explosion to the smallest teardrop. And thanks to a high-quality surround-sound speaker system, you'll almost feel the rotor blades whirring by as you watch a helicopter pass overhead. With the right setup, your living room will become a movie-watching cocoon.