Caveat: I'm a Newbie at this.

Room: Roughly 16x10
Throw distance: Roughly 12ft (due to features of the room)

Receiver: Yamaha RX-V661
Speakers: SBS-01 5.1 with PB12 sub
Projector: Epson Home Cinema 1080

Sources:

XBox 360 with HD-DVD player (No HDMI support)
Cable DVR via HDMI (Comcast)
iPod Nano via optional dock for reciver

Planned/possible Oppo dvd player

Connections:

Cable -> hdmi -> Receiver
360 -> Component -> Receiver

Receiver -> hdmi -> Projector
-> component -> Projector

*I may upgrade to the latest X360 for HDMI support but that is low on my list, I'll get a standalone hd-dvd player before I do that.


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My decisions are based on perusing the forums and reading outside reviews, however I'm always open minded to alternative suggestions or insight into possible gaps in interoperability of the components.

Because I'll most likely be using a ceiling mount for the projector I'd like to minimize cabling between the receiver and the projector.

I have all of the sources and have purchased none of the components/speakers/wiring as of yet.

Budget:

Speakers + Receiver: $2000
Projector: I'm over budget here with the Epson but I'd really like to get the 1080p support along with the other features.

Sound system will be purchased first, projector will come a few months later.

If I'm missing any other relevant information needed for feedback let me know and I'll try to get it posted ASAP.

I've decided to change things out and go with SCS-01's for LRC and grab a pair of SBS-01's for surround. With this change, and the fact that I'm planning on getting a PB12 NSD should I be looking at a different receiver than the Yamaha?

I would get a receiver that does up-conversion from component to HDMI. That way, only a single cable from receiver to projector. I have that set-up, but with a wall-mounted display, and it's rad. In my system, there is no noticeable latency between the Xbox (component out) and display (receiver does HDMI upconversion).

One of the more affordable upconverting receivers I've seen is the Onkyo TX-SR605; it should be in the same price class as the Yamaha you've selected. For Yamaha, you need a V1700 or V861 to get up-conversion.