£400 Budget - All in one VS separates?

[PBN]

I realise I am not talking big-budget here, but I want to get the best for what I have available... approx £400 to get a home cinema sound system, for movies only as I have a Hi-Fi that i am happy with. With all the reviews, I am changing my mind every 5 minutes. I am going to connect this up to a projector - probably a screenplay 4805. My room is small - a converted garage measuring about 17ft by 9ft. So, here is what I have shortlisted down to:

A Denon DHT500SD (~£410)

or

A Sony DAVDZ500 (~£360)

or

Separates consisting of a Toshiba SD350 (£65), Amp (eg Yamaha RXV357RDS £140) and a set of speakers (maybe Tannoy FX5.1 for £200) - Total approx £400

So, my question is, what would you go for? I really have no idea. Both the Denon and the Sony get superb reviews and yet the same magazines advise that separates sound better?

[hornydragon]

if you spend a little more (or more wisely) you will get a lot more BANG per buck, spend £400 on used kit and you can have a system that 18 months ago was £1000+ check the classifieds and forum special offers out serious bargains to had if you do the research!

[wicket]

I have got the Denon and can certainly recommend it. For the price it cannot be beaten. You would need to check what inputs you require for any system though.

[grizly]

hi
just brought a denon -500sd and I couldn't be more pleased its fantastic
I got it of ebay( new for £290 delivered)