Advice for newbie on in-walls

My wife made a bargain with me to turn my den into a workout room. In exchange I get to get new equipment to place in the living room (about 18 X 14 x 10, but it communicates directly into the dining room). Her main caveat is that the look be as uncluttered as possible. She wants all wires and all speakers as much as possible to be in the wall.

The set-up I had in the den was very rudimentary and cobbled together. I'm sorry I don't remember the model numbers. I have a Sony receiver (110 watt surround sound), a Cerwin Vega subwoofer, a Bose center speaker, two Infinity small size (but not quite bookshelf) front speakers, and two Polk rear bookshelf speakers. To give an idea of the models, I think all of the speakers cost around $100 except the Bose which was around $200.

Can anyone give me any advice on what to get for the living room? If they are not too crappy for this use, I would like to keep the receiver, and maybe the sub and the center speaker. So that means basically 4 new in-wall (to satisfy my wife's uncluttered request) front L-R and rear speakers. If you folks think that I'd be better served by scrapping all or some of my other components I'd be open to those suggestions as well.

I'd like to spend maybe $800 to $1500, although suggestions up to $2000 would be welcomed if you think they're well worth it.

My main use is for home theater, although I do listen to music (however, a lot of my music is labeled "lo-fi" so it is really the home theater aspects I am most interested in).

Thanks for any help you can provide.

No help from anyone? My existing equipment is just too uninspiring for you guys?

Thanks. What about the receiver? Will that work at all?

It's a Sony STR-DE897

My wife wants them as hidden as possible. Those Polks look like they would hide real well into our white walls. I don't know where I could preview them though, but with my low demands they probably will sound good to me. They sell them from Amazon for pretty good prices.

I will probably have the center speaker in the entertainment center so it can be normal sized. Since you don't think much of my Bose and Cerwin Vega, any ideas about centers and sub in my price range ($200 to $400).

Well, I had a consult with an install guy and between what he thought was feasible and what my wife thought was acceptable the idea now is to go to in ceiling. This makes me nervous because it seems that the sound source will be so far away from the TV, but the guy feels that with aiming the speakers, etc., he can make it sound right.

Based on the advice, I'll probably look at something like the TC610i's and just cross my fingers.

Thanks again for the help.

I was wondering myself about the Polks reference to rotating tweeters and whether that would be enough. You continue to point me in good directions.

I know now we may be getting into the area of the extremely subjective, but I notice that the Aim8 Three is somewhat pushing my price range. I might just bite the bullet and get them, but if anyone knows, how do these compare to: (1) Aim8 Two or (2) Aim7 Three? Obviously both would be inferior so the only answer I can really expect is something along the lines of "huge" difference, "minor" difference, "I've heard the Twos and they are also nice" or anything like that.