I hook up my SB Live to my Kenwood VR-407, which have AC-3 and DTS decoding, so I just hook up via Digital coxial output, and I hook that up to 2 Infinity Cresceno 3006 speakers which I think when I was new it was like $400 each, I got the pair for $94 =)
I don't care what people say about no 4 point speaker or oh no surround sound. My pairof speakers when benchmarked against my friend's Klipich it beats it hands down.