Just my wife around and she does not care about the volume so I use a set of Energy 5.0 micros with a polk 10" sub. Works very well and produces great sound. That being said, I am still looking at getting a decent set of headphones to plug into my yamaha receiver. Though I really enjoy having true surround sound.
EDIT
Ok, question for you guys. I love my setup for movies and games but if headphones are so much better, do you guys have anything in the $100ish range you would recommend for a gaming set of cans? I don't need audiophile level sound, but I would like something that can approximate surround. I am using a Yamaha RX-V373 with my setup, a fairly basic receiver that does the job for a room as small as mine. I assume that could power headphones that required an external amp?
Thanks!