Walk through each room of your home and make notes about the digital equipment you already have, what needs to be upgraded, and what you wish you had. Do you want a flat-screen television in the family room?

Do you want surround sound? How about motorized draperies? Go nuts. Next, underline your must-haves and rank the top five.

Here are some tips to help you create your dream digitalized home

Home Theater vs. Family Room

In general, a multipurpose family room is not a home theater. The distinction is important if you're craving a room that immerses you in the movie-watching experience. A multipurpose family room, sometimes called a media room, has the basics: a relatively large television, a DVD player and maybe even surround sound. But it probably also has a stereo, a computer and a video game system.

A home theater, on the other hand, is dedicated solely to watching movies. The room may be windowless and built to enhance sound. It may contain specialty lighting and soundproof walls. And the seating may be arranged theater style to accommodate rows of viewers. You can enjoy watching movies in both rooms, but commit to one or the other before you invest the time and money on upgrades.

Spread out the budget

You need a budget that needs to be spent wisely. A few good components are better than one high-end piece. Don’t dump all of your money on a plasma screen and forget to set enough aside for quality speakers.

Don't overlook extra costs

The sticker price of an electronic device is rarely the bottom line. If you want more memory on your computer or digital camera, you will pay extra. If you want to network your computer, you'll need to buy a router. Other costs, such as an extended warranty, can add to your purchase price.

Lastly, don't leave out subscriptions, such as those for satellite television, Internet, or digital video recording services.

Surround Sound Speakers

Most DVD soundtracks are recorded with either Dolby Digital 5.1 or DTS (Digital Theater Systems) 5.1. The "5" refers to five channels, one for each speaker in your surround sound system, and the "1" refers to the subwoofer.

This means you don't need more than five speakers and one subwoofer to get that three-dimensional sound experience. In fact, instead of buying seven speakers, buy five and spend the extra money on quality. Your ears will thank you.

Don't skimp on wiring

For the digital home to work smoothly, you're going to need substantial wiring and cabling. Whether you're installing it or hiring a professional, plot out where you'll need the wires. Create a simple sketch of the room's layout and the placement of every piece of electronic equipment.

When installing, don't skimp on the length or quality of wires that connect the components.

Storage

If you're going to invest in digital equipment for your home, also think about spending some money on proper cabinetry to store it in. Electronic components get hot, so look for cabinets that have ventilation holes and shelving that is at least 3 or 4 inches deeper than the component so that air can circulate.

Wider shelves will also make it easier to access cable connections. The extra space is good for airflow and can accommodate additional electronics in the future.

Take control

A plethora of electronic components can either help or hinder your home enjoyment. Try to get one mega remote that controls all of the digital equipment you can see from where you stand.

Get expert advice

Even do-it-yourselfers can use some advice. Stores that sell home electronics offer installation services.  Even if you don't need help with installation, you may want some advice planning the placement of your electronics and where you need to run wires and cable.

(Source- Internet)