Reminds me of koach's room:http://www.avsforum.com/avs-vb/showthread.php?t=1065426
1) Height of room is only 6' 9" - will that impact a ceiling mounted projector? Considering Epson 8700UB.
-Yes it will. You want to make sure the projector doesn't end up over the second row of seating/aisle space where heads and projector will compete for headroom. A short throw projector might be one option.
2) Do I need to extend the wall on the right side to close off the room? Wife wants it left open.
- The room's shape isn't perfect anyways, so it could be left open. Has the Mrs considered the noise escaping the theater area?
3) Speaker distance from listener's ear on the left and right surround channels, especially the left side - very little distance.
-Explore in ceiling surround speaker options? With that space, surround speakers are going to be close and that's a given.
4) Viewing distance - am I leaving enough distance for a 115ish inch screen?
-I think you are leaving too much viewing distance. And maybe slightly too big a screen. You need to draw a sightline diagram (side view) to plot the seats, riser, projector. Remember the rear row needs to see the bottom of the screen. With the low ceiling height, there'll be few workable solutions and lots of poorly working layouts. I suggets you start planning with your seating and not with the screen size.
The sole 6' 9" high theater I've been in, had a 5" riser, and offset seats with 2 seats in the front row, and three on a small island style riser. The projector where you have it drawn, is right in the headroom of the pathway of the second row of seating. You also might shrink the distance between the seats (and go with non reclining seats for the second row. I'd also recommend low backs eating.)
An AT screen could also hide the electrical panel.
So what's on the other side of the wall where you have the media rack drawn? I suspect the furnance is there centrally located, but could the side wall be moved over, to widen the room.