PCGameTheatre vs TV/Console

Hi everyone.

I'm looking to make an investment for the purposes of a gaming platform and home entertainment. I'm a undergrad though and once i'm done with it, i'll be going to grad school for sure. So mobility and costs are going to be a factor. These are the options that I'm considering:

1. Buy an awesome gaming PC, get a 21in monitor and TV input capability. I have an extigy and logitech's fairly decent z560's. The way I figure, I could play tons of games on this, watch DVD's and TV for about 1k. The games I wont be spending money on. This whole thing should cost me about 1k or so, and will be fairly portable.

2. Buy a 21in or more TV, a DVD player/VCR, the amp etc I might need for it, get home speakers, a ps2 or xbox, and buy games for it. It might be better in terms of quality but will be a lot less mobile. I'm not sure what the tentative costs would be but it sounds like a lot more than 1k.

Which option makes more sense? What have I not considered? What should I doooooooooooo?

thanks,
merry christmas,
pvj