I spent a lot of time searching, then researching for options to connect my laptop to my HDTV and home theater, to get best possible output. Sharing the solution I finally went in for, just in case any of you are looking for it —
1. Transferring video from your laptop to HDTV:
You have basically two options – (i.) S-video to DVI cable, or (ii.) HDMI to DVI cable. Now, since you already have an HDTV you might as well go for HDMI-to-DVI cables to enjoy the best possible experience. I went for Cables to Go HDMI to DVI – they cost about $30 on Amazon.
Since I have Macbook, which does not have a DVI outlet, rather it has a mini-DVI outlet, so I bought Apple Mini-DVI to DVI adapter – costing $18.
2. Transferring sound from your laptop to your home theater:
You will need an audio 2-RCA cable – so, one end of it has one plug, and the other has two plugs (red & white) that go into your home theater. Belkin Pure AV is a good brand – will cost about $10. Here, the max cable length that I found was 7ft, and I felt the need for an extension cable of 6ft – another $14.