I am about to put up my 5.1 set up. My problem is that I dont know where I should put the placement of them. I have an audio tower that stands next to the tv. I will be sitting 16 feet away. The space between the tv and audio tower is about 17.5 inches. The tv sits 29 inches off the floor. Ive read that the speakers should sit at ear level at least the front ones. I wont be able to put the center speaker at ear level as it will either be above or below the tv. Do you think the space between the audio tower and the tv is too small of space to put one of the front speakers? I will be putting the subwoofer on the bottom in that space too?

Buy or build yourself a low two shelf piece of furniture to replace your tower. They are usually 20" high. The picture shows the one I built from plywood. Place it under the TV. Place your speakers to the left and right. Place your center speaker on the low gear rack. Ear level is prime but just below the TV is not a problem. Angle the center speaker up a degree or two of you feel the need.
Have fun.

I forgot to mention that I had to get the audio tower, due to my little kids as they would like to get there hands on the all those devices.

I am about to put up my 5.1 set up. My problem is that I dont know where I should put the placement of them. I have an audio tower that stands next to the tv. I will be sitting 16 feet away. The space between the tv and audio tower is about 17.5 inches. The tv sits 29 inches off the floor. Ive read that the speakers should sit at ear level at least the front ones. I wont be able to put the center speaker at ear level as it will either be above or below the tv. Do you think the space between the audio tower and the tv is too small of space to put one of the front speakers? I will be putting the subwoofer on the bottom in that space too?

Why is the equipment rack so close to the tv? You should move it to a side wall and run a longer cable to the tv. Then you can put the speakers on either side of the in the proper locations. Also, I suggest you raise the tv by at least a foot. At 16 feet away in a normal seated position you will be looking down at the tv. It is not a problem to mount the center speaker above or below the tv (the tv is currently too low to mount the speaker below it) as long as the speaker is angled to point toward your ears.

My front door opens up to that area onto the left, so I cant move it more to the left or I would. The tv, I thought looked good from where it is at. Im not looking down when in a seated postion, from what I read on this board it said to put the tv at little above eye level, which for me it is as Im a short person.

I didn't say to move the tower to the left. I just said to move it to a side wall. Or any wall. You cannot put a speaker in the space between the tv and the tower. The sound from the speaker will reflect off the tower and sound like crap.

I understand that you want to keep small hands off the equipment (which makes me wonder why the tv is at finger level and you have exposed wires running between the tower and tv), but you are going to have to move things around to accomodate the LCR speakers. You haven't even mentioned anything about the surround speakers.