I'm currently in the process of getting a decent home theater setup (at least for how much money I can invest). I am most likely going to purchase the Onkyo HTS760, but lately I've been looking at lots of sites that offer factory refurbished. Although it would cost me almost $200 more, I could get a decent component setup but it would be factory refurbished.

Take Onkyo, for example. I can get their TX-SR601 receiver, which has gotten great reviews, for $360. Then I could head to other sites and buy some speakers for a few hundred more that are reconditioned, giving me an awesome system for my wants/needs. Also, I can get the entire Onkyo HTS760, plus their bottom of the line DVD player for all less than I would pay for just the theater system new. The catch, of course, is that they are factory reconditioned.

So what I'm asking you all, is how trustworthy are factory reconditioned products? Is it worth the money I save from new to get one of these? Some cases it's as much as a 50% discount. Should items from certain companies be trusted more than others? Is buying an extended warranty needed (which in some cases might negate the slight savings over a new item)?

Anyone who has personal experience with a factory refurbished item, please share. Thanks,