Originally I was going to hang a plasma here but now this has evolved into a projector setup with a retractable screen that will be ceiling recessed.

Here is the room:
http://i8.photobucket.com/albums/a39/grantrobarts/room.jpg

Here are the dimensions:
http://i8.photobucket.com/albums/a39/grantrobarts/room_dims.jpg

I don't want to go overboard with this project, but the idea of doing a projector screen has really grown on me. The equipment I am looking into right now:

Da-Lite Advantage® Deluxe Electrol® (92"-106" somewhere in there)
Optoma HD20 or HD65 Projector

At this point I am targeting $2500 for projector and screen. I am set up for 5.1 surround with in-ceiling Niles speakers.

Does the room look good for doing this? I am completely new to the home theater arena and I am a little concerned about having too much light in the room, although the walls immediately around where the screen would be are fairly dark.

I would say you could do better on the projector front. Lurk around the under 3k section and see what people are saying. The 65 is getting long in the tooth and is only 720p. You can get a good 1080 projector for a few bucks more. Otherwise it looks like it'll be a nice space.

Also, check out the monoprice screens. People have been very satisfied with them and are 1/2 the price of the DaLite's.

As for light control, i see 2 door openings, i'd imagine there's a window opposite your screen wall? Curtains work great in that case. ;)

As for your in ceiling speakers, looks like you have hardwood floors. I'd consider getting floor standing LCRs for the front, and use the in walls for the surround portion. Otherwise sound is just going to go all over the place aimed at the floor like that. The sucky part of doing in-ceiling speakers is that you can NEVER move things around and have the sound be right.

I would really suggest you reconsider putting your A/V cabinet up front. That will just eat up valuable screen wall space and add distracting lights. Most people default to the front of the room out of habit, but especially when you go PJ/big screen and open walls it would be easy to pull all your cables back to an A/V cabinet or closet elsewhere - either the back of the room or perhaps an adjacent room. Just add one or more CAT5e or CAT6 cables so your remote can control everything without direct line of sight.

The room will have carpet eventually. Right now it is just 2x6 subfloor. I wasnt planning on doing a HT until a week ago, so the in ceiling speakers were the original plan. But I just like the idea of having flush speakers that won't be so noticeable in the case of it just being a room other than a theater.

The AV cabinet I was planning on putting in that spot would not be a floor to ceiling cabinet. I wanted to keep it as low as possible. Also, it would not be a transparent cabinet. I would probably finish it with a solid door. Unfortunately I just ran a ton of speaker wire and CAT5e to that location for my multi room audio. I have about 6 runs of 3 cables each so moving that would really ruin my day. I didn't really plan around the idea of a home theater setup at first, but I am really trying to salvage what I have and make it the best I can.

I am putting wall sconces at the front of the room on both sides to give me better theater lighting. Originally I was going to only have the 4 six-inch cans I have there currently. But I will switch the sconces separate from the cans. I am taking care of all of this tomorrow.

Actually now that I am really thinking about it I need to move that AV equipment. What about recessing it in the wall right in the same area? As in to the right, not in the brick.

Actually now that I am really thinking about it I need to move that AV equipment. What about recessing it in the wall right in the same area? As in to the right, not in the brick.

IMHO, that would be an improvement over keeping in on the screen wall. What room is on the other side of the wall to the right of the HT in this photo? No matter where you put your A/V cabinet, make sure it is (a) large enough for not just your components, but the cabling and easy access, and (b) that you have some way to circulate air in there, otherwise you'll have a heat trap. Can you vent the back into whatever room that is adjacent?

Same with the sconces - if you really want a big screen try to keep your screen wall free from other stuff, including lights and A/V cabinets. You can put sconces on the side walls near the front if you want, or perhaps cans or track lighting on the ceiling, but think twice or more before putting lights on the screen wall. You may just decide to go to a fixed screen there at some point, and lights would be a problem then.

I know it is a hassle making adjustments now, but it is still nothing compared to doing all the work to finish it off and THEN decide to do it right.

Good luck - it's a long journey!

The sconces are definitely going on the side wall, nothing on the screen wall. Directly to the right isa patio area that is technically the exterior right now. There is a roof over it and it is framed in, but does not have enclosed walls.

In the future I plan on closing it all in and adding it to my square footage. But what I am thinking right now is I can recess the cabinet on that family room wall into the patio area. I could easily circulate heat and the cabinet would be out of the way of the screen.

I am also planning on painting this room a very dark red, almost a brownish-red.