Yes, it can be used with a surround system, but you'll need a multichannel amplifier or receiver between the player and the speakers to decode and amplify the sound.
Cheers guys. I was hoping to find something what would include the amplifier in it... Do the home cinema systems like PANASONIC SC-BT230EB-K http://www.comet.co.uk/shopcomet/product/630284/PANASONIC-SC-BT230EB-K therefore include an amplifier?
Is this any good? I'm going for Panasonic as this is the same brand as my TV TX-46PS10B which I've been please with.
The Panasonic SC-BT230 is an all-in-one system - this means you get the Blu-Ray player, amplifier and speakers all together in a nice package. They're built for simplicity and, if all you're looking for is a Blu-Ray system, something like this will get you up and running quickly and easily.
However, you do lose out on flexibility so if you think you're likely to ever want to connect some other things into the surround system e.g. Sky, Virgin, a Freeview HD PVR, or a games machine like an Xbox 360 or a PS3, you might want to consider a separate system as it will make things easier in the long run. If you're not interested in any of this though, an all-in-one like that Panasonic will give you all you need.
I'd also look into the Sony BDV-E370 in that price range (available for £300 from Play.com and £310 from Amazon).