For $200, go for the bookshelf stereo system.
The reasons I say that are:
1. A good bookshelf system at that price will have an Aux input where you can plug your TV/DVD/VCR or whatever into. This way, you can have good stereo sound for your veiwing time. You will also have a much better sounding stereo setup than whatever HT equipment you could scrounge up for that price.
2. In the future, if you decide to go with a HT setup, you can always buy it peice by piece, and get a MUCH etter setup than what you will have now. This is much better because its not such a big hit to your wallet at one time.
The only other option I can think of, is to skip the stereo altogether, and start by just buying a decent reciever. With $200 you have a few good options for recievers, and you can start to slowly build a very nice stereo this way.
Then, when you have another chunk of money, go out and buy yourself some good mains (front speakers). You can go from there. This would be the most cost effective approach, as it will save you money in the long run.
I would personally do the latter option, but I know most people have far less patience than I do, and want sound RIGHT NOW, so thats why I put the other option up there.
Either way, good luck with your project.
