Home theatre setup queries

you could connect the hdmi outputs from the DAV and the PS3 to the panasonic since it has two hdmi inputs. Connect the VGA from your PC to the Panasonic too. that's the video bit taken care of.
For audio, you have a problem because the Sony DAV has only one set of inputs - this is for analog audio. You can either buy a manual switch with multiple analog inputs and one output and connect that to the DAV, or switch around cables manually when you change source on the panasonic. Or depending on your sound card, you could connect your PS3 analog output to the line-in of the PC, connect the line out of the PC to the DAV, and switch sources on the PC.

The reason for all this malarkey is that you dont have a AV receiver which syncs audio and video when you change source. I would recommend you buy one+speakers, getting rid of the Sony DAV.

That means, quite more expense. The Sony DAV was something that looked good and neat with its satellite speakers and stuff.

But as you said, an A/V receiver is required + Speakers. What could fit my budget of 20k , I am not a huge fan of Heaaaaavy sound, but a good clarity sound is important too. Any tips on that?

And as you said, the A/V receiver has HDMI connectivity which will take care of all sound and video components?

Or better, Will the use of HDMI switchers help me out in this big configuration?? (i am not sure how this works in terms of input mode HDMI and output mode HDMI .)