We are in the process of setting up our first home theater and I am looking for any advice that anyone can offer. Enclosed are a couple of pictures that show our new room. The room is fairly small (16'x13'x8') and will mainly be used for watching movies and listening to music.

I am looking at getting a screen around 100" and have budgeted around $1000 for the screen. I have narrowed the projector down to either the Mitsubishi HC6500 or the Epson Home 1080UB. I am considering either the Denon 789 or 989 AV Receiver with 5.1 speaker setup. I plan on using 3 front speakers (L,C,R) mounted in the wall with the left and right speakers mounted on each side of the screen and the center mounted above the screen. I want to use 2 surround sounds mounted in the ceiling towards the back of the room. I have budgeted around $1500-$2000 for the speakers.

I would appreciate any feedback on the above items and any recommendations on screens and speakers.

Thanking you in advance,

Darrin