We just purchased a new home. The "plan" was to use the formal dining space adjacent to the living room for my tv and audio. Now she really wants a formal dining area, and asked if I could move A/V into the living room. I agreed to look into it, but I am having a terrible time figuring out how to make it work. The living room is open to an upstairs balcony with tall ceilings, and has hardwood floors. But the worst part is the area I have to work with is on the side of a fireplace, and it is only 5.5 feet wide X 2.5 feet deep. There is a hallway on the other side of the fireplace, so flanking it is out. In this area will need to be my speakers, sub, receiver, Blu-ray and 58" plasma. There are two surround speakers already wired on the rear wall. I am open to buying / building what ever is necessary (within reason) to make this work. Here is what I currently have: Onkyo 805, Magnepan 1.6QR, 3 Klipsch SLX, Klipsch RW-12, 58" Samsung plasma. Obviously my Maggies are out. Please take a look at the photos, and let me know if you have ANY suggestions.
Here are the only ideas I have at the moment:
1. Mount the plasma to the back wall with a mount that will extend the TV forward and flush with the fireplace. This will give me room underneath for everything else. Place 2 speakers (floor standing, bookshelves on stands, or my Klipsch SLXs on stands) 5.5 feet apart, place the sub between the speakers and under a small rack to house the other components. Given the distance between the speakers, I will probably just phantom the center channel. There is also the option of using a wireless module for the sub and place it elsewhere in the room.
2. Use a soundbar.
I would then either mount the plasma to the back will with a mount that will extend the TV forward and flush with the fireplace and place the sub and components under it, or use my existing stand and wireless my sub.
Here is my current setup in the dining area, and my Maggies.

Here are the only ideas I have at the moment:
1. Mount the plasma to the back wall with a mount that will extend the TV forward and flush with the fireplace. This will give me room underneath for everything else. Place 2 speakers (floor standing, bookshelves on stands, or my Klipsch SLXs on stands) 5.5 feet apart, place the sub between the speakers and under a small rack to house the other components. Given the distance between the speakers, I will probably just phantom the center channel. There is also the option of using a wireless module for the sub and place it elsewhere in the room.
2. Use a soundbar.

Here is my current setup in the dining area, and my Maggies.