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TWP,
What do you want it to do?
1) Is MP3/streaming audio/tv type stuff important to you
MP3 from an iPod would be ideal but is not a deal breaker. Streaming tv I don't need at all.
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2) Do you need a cassette deck?
What's that? (read: no)
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3) Do you own a lot of CDs?
Yes, but don't listen to them THAT often. Wouldn't mind having some nice CD playback capability, though. Goes slightly below iPod capability in terms of 'nice to haves'. I.e. would be willing to pay $100 for each capability probably, but not $300 each.
22' x 15' but not sure precisely where tv/couch will be located.
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5) Are you going to use it predominantly for music, or for dvds/gaming?
TV/movies. Maybe slight gaming (haven't played in months, but go in spurts every few months.) Not much music, but would be nice-to-have as mentioned above.
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Do you need all new equipment, or no?
Generally avoid non-new stuff unless there is a very good reason (like a car).