I want to watch Blu ray and DVD on my PS3 In surround sound. Would I be able to hook my PS3 as HDMI input through the Home theatre system and would the quality be just as good as a top class Blu ray player in picture wise and sound wise?

This is a quick video of my system which includes Klipsch Reference speaker all around RF-35 fronts, RC-35 center, RB-35 surounds and a RW-12 subwoofer. The receiver is a Sony DA3000ES and the TV is a Mitsubishi 60" DLP. The blu-ray player is a Sony PS3.

I bought this especially for the release of Rockstar's most anticipate game to come yet, 'RED DEAD REDEMPTION' and testing the sound quality with surround sound and subwoofer set up. This is my small entertainment/bed room where I can watch blu ray movies, dvd, browse the net and go online for multiplayer games. I had the intention of creating a small home cinema at a low budget cost as a student. I am proud of what I've got so far

I recently purchased a HDTV with 1080p and a blu-ray DVD player (PS3), and wonder what are home theater systems that would provide better outcomes at a reasonable cost (<0). Do I need to buy a system or a receiver and separate speakers with capacity of 7.1 channel and HDMI 1.3 output?. Any recommendations on particular brand name and model?

Thanks ahead of time for your help!

I am looking for an affordable home theater system and most of them available require a separate receiver. So I need to know if my PS3 is a receiver.

I have a ps3 and i am going to get a home theater system and i wanted to know can I just use my ps3 as my dvd player with the system or do i need a seperate dvd player

I know I can play dvds on my ps3 but, I wanted to know if instead of buying a home theater system with a dvd player, could I just buy a home theater system without a dvd player and use my ps3 as the dvd player or do i need a separate dvd player?

I'm looking for a basic and cheaper home theater system that would do surround sound for DVD player, BlueRay player, Xbox, PS3 and my laptop. Any suggestions? Will these normal DVD home theater systems do that?
@The One: Thanks for the answer. So, I should buy a receiver with speakers and not a dvd home theater. But what about TV? Will TV (from normal antennas etc) connect to that receiver for surround sound?