I've had this system for several months. Sound quality is fantastic, though as with all multiple-speaker systems, placement of the speakers is key. For the price and features -- full decoding, ability to play tons of file formats, very slick design, and, in my opinion, fantastic sound -- I don't think it can be beat.
Don't let the l33t users scare you off. Go listen to one yourself, and make your decision based on how it sounds to YOU.
In MY opinion, the pros are:
-- Truly great sound. Positioning the speakers is key. The unit includes an elaborate configuration program that helps you "tune" your speakers. I highly suggest using it. Makes all the difference.
-- Fantastic design. You just won't find another unit this small that can do all of this. Speakers look great, sub looks great, and the main unit looks fantastic.
-- Ability to decode all dolby signals, and play lots of disc formats.
Here are the cons as I see them:
-- If you search on google, you'll find people complaining about some quirk where subtitles get turned on, and you can't turn them off. I've never experienced this, but it was the biggest red flag circulating when I decided to buy mine. At the time, people said Sony was aware of the problem and was arranging to fix units. It's possible that this plagued only earlier generations of the units, I don't know. As I said, it hasn't happened to me.
-- The remote leaves something to be desired. It can control everything, which is nice, but the design is poor. The remote itself is quite large, but the buttons are relatively tiny. I find that I don't use it much, so it doesn't bother me. But something to keep in mind.
-- It does indeed take time to change CDs/DVDs. This is not a rotating platter system, it's an elevator system. It certainly doesn't take 20 seconds, but there is a MUCH longer lag than you are used to. One other problem: Because it's not a platter system, there is no way to see which five CDs/DVDs you have in the system at the moment. They no doubt built the system this way in an effort to save space. You just have to decide if the space saving is worth it for you.
Feel free to IM me if you have any specific questions about the unit. Anyone who tells you this isn't worth $300 -- or even $400 -- is nuts. That's a fantastic deal on this thing.