djtech2k - as someone who has owned a 50" DLP, a 106" front projection setup (Panny and Epson projectors), and is now buying a 65" plasma for the bedroom (had to give up the theater temporarily when I moved)... I'd STRONGLY suggest front projection. You can get a very decent projector for less than $2k. Heck, the Epson 6500 that I have and love is only $800 on ebay. If you are sitting 13' back from the screen, you simply aren't going to get an immersive feeling from a 60" or even 75" screen at that distance. If you have a dark room, you can use FP (front projection) even in the day time. A screen isn't that expensive (I used a cheap $300 Da-lite Model C retracting screen, but fixed screens aren't too much more), and a projector isn't hard to set up. For your room, the 25' throw is probably too far for the zoom lens (even on the Panasonic or Epson models, which typically have a very long range zoom), so you would have to consider tabletop or ceiling mounting. Plus, projectors are brighter close up (using the long zoom reduces light output). I think ProjectorCentral.com has a calculator that lets you check out the zoom options, so you could confirm you wouldn't have an issue. From my quick look, I think you could do a 106" screen with a 10.5' throw.
Believe me, it is WORTH IT for a basement HT to go FP. Gaming on the Xbox 360 is amazing. Movies are amazing. Sports are amazing. Bigger is better in this situation! Go boldly! Depending on the projector you get, you might even save some money you can put towards your surround setup. Real 5.1 speakers (compared to a sound bar) are far more capable, and the Bose stuff is very overpriced in my experience.
Just my two cents, good luck!