I'd go with the full AE Aego5 theatre system for retail USD $1200. Add the dvd player of your choice and you're in business, with a better result, and for less capital.
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As much as I like Linn products, the Classik movie lacks the punch to do justice to a film soundtrack. I auditioned one, being lured by the Linn reputation and ease of use of a single box. The volume must be above 3/4 all the time,
Classik Movie lacks component video switching, Classik Movie-Di adds component video switching but the two of them lacks proggresive output. The room were I auditioned was about 14' x 12' x 9'.
I would say it's ok if you mate it to some efficient speakers of 90db+. The tradeoff you are making is power for sound quality/compactness at the 3K price point.
There are some televisions that will have video switching built into them. My Sony XBR does and I connect all my video sources directly to it. I use all sony sources so the switching takes place automatically when I start using a given source.
If you do find that you are short on power you can run five channels into dedicated amplifiers. Even at 3K, a good quality pre/dvd/processor is a pretty good deal. There's a lot to be said for an integrated system.
Here is the classik movie manual: