Join Date: Jul 2009
Location: Cedar Rapids, IA
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Welcome! Couple of quick questions for you..
1. Was there any soundproofing done to the room? Insulation in walls, ceiling, floor (since it is on the 2nd floor), decoupling of the drywall from the framing, 2 layers of drywall with greenglue between the layers? Main reason for asking this is if no soundproofing has been done at all, then is matters little if you go with in-walls or in room speakers. The sound will find a path to the rest of the house. Also if that is an open entry on the right, the sound will have an easy path to escape.
2. Is that $1k budget for the AVR and speakers only, or does that include the screen and any other items. If the screen is on a separate budget line, I would suggest a Jamestown screen. Very budget minded screen, and very good as well. Much easier than DIY IMO, and not much difference in cost.
Lastly, you may want to consider moving this thread into the Dedicated Theater Design & Construction forum. You will get a lot more traffic there and a lot of suggestions to help you complete your project.