I have a front projection home theater with the following layout:

http://www.nwrep-intrepid.com/roomconfig2.jpg

Where it says 'screen' I am trying to decide how to best put up a 'wall' to make the room closed off for lighting, aesthetic, and acoustic considerations...

I was just going to do a curtain along a ceiling track, but i'm not sure if I can do better.

Does anyone have any suggestions as to how to best make this work?

If you're not willing to build an actual wall, some heavy curtains would be my next suggestion.

Not something from the Martha Stewart collection.. Like a velvet curtain with a backing.

Tim

2x4s, sheetrock, mud, and paint? :) BTW, you might try this for your mockups...
http://sketchup.google.com

A curtain or a make shift wall might help you with items one and possibly two but it won't do to much for your acoustics or sound reduction.
You are best off to build a real wall.

You can put up a temporary wall that you could remove later. Just rest it on the carpet and use a few screws at the top through the drywall on the ceiling and into whatever. when you take it down later you can just patch the few holes.

If you don't want to use drywall you could just stuff the wall with insulation and staple on some fabric or anything else you want.