current.png shows my current setup:

As you can see, there's very limited space. I haven't bought speaker stands so I have them wall mounted behind me. However, I believe having them on the sides of the couch would provide better surround sound. speaker_stands.png is the setup I am planning to go with:

The thing is, the speaker stands will have to be right next to the couch. So which setup is actually the better of the two?

Since both pictures show the surrounds behind the couch, I don't think it will really matter.

But with my current setup, the speakers are not pointing directly at me since they're mounted against the wall. The one with the speaker stands that I'm hoping to use will have the speakers pointing directly into my ears.

The Dolby labs (see web site) recommended diagram for 5.1 shows angling speakers like your close to couch version but for my taste that is too close.

I dont know how close to scale your diagrams where...but if you end up using the stands and that brings them closer to you, make sure you adjust the levels of the rear speakers so they aren't blasting you away.

I recently repositions my rears on my ancient HTIB to directly on the sides (were much further behind me before), and after getting the levels just right, made a huge difference in the experience. I was playing with it so I can figure out what will work in my new place after I upgrade everything. The living room is nearly identical in size and shape.

i have seen both picture and would like to say it will not really matter.

Thanks
Dennis Mayberry