Replying to Computer video cards for home theater pc

going with the xfx hd 5770 from ati. has audio in 7.1 or in trueHD with a decoder/receiver. something that the nvidia cards lack.

i think this card will give me a good balance between game performance and video performance on a 40"+ LCD

another option would be the gtx 260 super clocked from EVGA, then used the SPDIF and hook it to the motherboard which will be a MA770T-UD3P with the onboard "8-Channel ALC 888 onboard 7.1 sound with 6x 3.5 mm connectors (1x optical S/PDIF out, 1x coaxial S/PDIF out, 1x int. S/PDIF in/out, 1x int. Aux, ext. Line in, ext. Mic, ext. Front out, ext. Side out, ext. Rear out, ext. Center/Subwoofer)"

question is, the hd5770 keeps it simple for video, although the gtx will perform better for games and is having the SPDIF 7.1 really that much of a sacrifice over trueHD? couldn't i just upgrade to a stand alone sound card if thats what i want in the future?

any experience with playing computer games on a tv? do you hate the wireless keyboard and mouse?

i guess this all comes down to how serious of gamer are you? hd5770 for more movies then games or gtx 260 for my movies then games.

thoughts?