Thank you so much for the quick response! As simple as it is...I have been puzzled for days on what would be the best way to accomplish what I wanted and not make it look too crowded in that room.
Here's a scaled version (each cell is one sq ft), I am thinking of removing that small closet doors (it is only 16 inches deep or so) and tear down that false wall so I would get 1 foot plus on the with of the "theater" area. Thoughts?
With this much clearer layout, I just have a couple of thoughts/questions:
1) Would it be too crowded if on the island portion I put a 4 seater instead of a 3 one?
2) Would placing the front left and right speakers inside the cabinets I am planning on building going to affect the sound?
3) Is this room too small to think about a 7.1 Surround instead of a 5.1?
4) As you see, the side speakers are the issue (I do not want them standing on the way of the walkway)...would it work if for just the side speakers I go with "recessed" ones installed inside that half wall I was thinking of placing on both sides of the raised island?
Once again, thanks a lot for our input!