The first step to proper home theater audio setup is if you have a tile, hardwood, or any other non-carpeted floor, to put down an area rug. Hard floors may look nice but they affect acoustics poorly.

The second step in home theater audio setup is to place your speakers. For a stereo setup, placement is simple - one on either side of viewing area. For Dolby Digital 5.1 or Surround EX, however, you must take extra considerations into mind. Your center speaker should either be on top or below your display and facing your primary viewing position. The left and right front speakers should be on either side of screen, preferably at ear level, at about a 45 degree angle from center of viewing position.

The optimum setup for a home cinema design is to give it its own dedicated room. This allows you to position seating, speakers, display and equipment in best possible positions. Budget, however, will be your next consideration. You'll need at least a DVD or VHS player, a widescreen television set, an amplifier (preferably surround sound) and speakers. Make certain to leave room in your budget for cables and wiring as well.

You will also want to budget for interior design necessities such as seating, lighting, and acoustics. You will want best seating you can get for most comfort. Remember, you will be spending hours upon hours in seating watching movies, so they should be ergonomically correct and comfortable, but not to point where it would be easy to fall asleep in them. You will also want seating to be acoustically correct - they should have some sort of upholstery, without lots of exposed wood or metal parts. The seating also shouldn't have high backs, as this will affect viewer's experience of sound by blurring it.