I'm currently in drywall stage of my budget home theater. Picture below. Room is 10' wide and approx 16' deep. Going to have 2 rows of seats, rear on a riser. The shelf is for my toshiba 46" RPTV to sit flush to the wall, and i was planning on having a motorized screen hang under the valance above to come down in front of the tv. a 100" screen is about 8' wide so i have just less than a foot on either side for speakers. I was looking at buying 3 paradigm cinema 330's, one on each wall at the corner and the center hanging on the valance or just below so the screen could drop behind. I would like to spend a bit less than these cost though and have not decided where to put my surrounds. I ran wiring to locations inside the valance for 7.1.
Any suggestions for me? what speakers would be good to place in the corners of the valance for sides and rears?

picture here:
http://media4.dashwire.com/media/a9W0SieBer3BS6adbimNyZ/dmHSZgVAKr3yJPadbiFPIU.jpg

Axiomaudio has some on wall speakers that would look stunning on either side of the screen and are only 9" wide and their QS8s surrounds are some of the best out there, IMO.

are there any decent Canadian online retailers for axiom? I looked on their website and they're probably a bit out of my budget. The paradigm 330's are about 350 each and i'd like to stay under that if possible. Looking at a Denon avr-2808ci for around $1000, so whatever will suit that well. The paradigm adp-190's they had at the store here looked great for mids but they didn't have anything that looked good for rears. Is it possible to get a good 7.1 setup that will wall mount for around $1300-1500 CDN?

If I do decide to go with the ADP-190's for surrounds how would I mount and point them at the rear?

Go to Axiom Factory outlet (http://www.axiomaudio.com/factoryoutlet.html). You can get 10% off everything and then another 5% for a HT discount (5 items or more bought) and if you go with the W2 W100 and QS4 you should be very near your budget.

Axiom is factory direct so no other retailers. If you are leary of purchasing unheard check the Hearing Things forum on their website and see if there is anyone nearby that can give you an audition. If you do not see anyone close, then post you are looking for an audition.

Thanks for your help, i'm looking now at the Axiom speakers and checking reviews here.
Are the w2, w100 and qs4 large enough to fill the room I have? or should I be looking at the w4, ws150 and qs8?

Thanks jakewash for your advice. I just placed an order for the following:

Single Factory Outlet QS4 (4 week wait) Black Oak 2 220.00 440.00
Pair W2 In-Wall Speakers Black Oak 1 508.00 508.00
W100 In-Wall Speaker Black Oak 1 393.00 393.00
Subtotal: $1,341.00 CAD
Home Theater Discount: $67.05 CAD
GST: $63.70 CAD
Total Amount of this Purchase: $1,337.65 CAD

Until 12pm EST Tonight they have a $100 coupon for future orders that can be used until may 2009, so sometime between now and then I will order 2 more QS4's for side surrounds to complete my 7.1

Sled - what's the ".1" (you haven't mentioned it yet)? Do you have a budget for your sub or do you already have one?

AHH.....good question.
I have a Paradigm PS-1200. I was thinking of putting it inside my TV recess on the bottom right of the picture and cutting 2 grilles near the bottom approx 10" high by 20" wide with grille cloth on them. In between, under the TV I am planning on building a wide shelf with room for my receiver, HTPC and Sat Receiver so it will look symmetrical. I'm most likely going to build a small stage as well, around 6-8" high and not so deep.

Any thoughts?