A television receiver includes a graphics generator (800) for generating for display a stylized image (105; 205; 305) of the environment in which the user's physical television receiver is situated. The image includes graphical representations of functions which are available for selection and control by a user, and at least one (135) of which functions affect the display of the video image. In one embodiment of the invention, a video inset-image from a PIP unit is completely surrounded by a graphics image. The PIP image is aligned with the screen (111; 211) of a graphically displayed television receiver (110; 210) to portray an image of a television displaying a received television program. Alternatively, an animated graphics presentation is displayed in the screen area (311) of the graphically-displayed television receiver to simulate live video. In another embodiment, a stylized display of the user's room is altered in response to user input regarding the user's consumer electronics equipment, and submenu operational choices are enabled or disabled accordingly.