5.1 or 7.1 surround sound by: Paul - The Home Cinema Guide
Pete
There isn't a huge amount to choose between these two types of surround sound, but there are a couple of things to think about:
1. For a 7.1 system, you really need enough room behind your sitting position to place the extra surround speakers properly. See the diagram here on 7.1 surround speaker placement. If your room doesn't allow this, then you would be better off going for a 5.1 setup.
2. As you mention, a 7.1 system will prove slightly more expensive as you need a compatible AV receiver and two more speakers. If money is tight, I would stay with 5.1 as you may get better value for money.
A 7.1 system can sound good, however there aren't too many native 7.1 soundtracks so you will be mainly relying on Dolby Pro Logic IIx to fill in the gaps.
In short, if you have the space and the money, then go for 7.1. If not, sticking with 5.1 will be better and it will still sound great.