Well...it depends on the room Rooster. Got any windows to contend with, or anything that takes away from useable space? If not, you could mount a PJ like the Panny AE3000 (~$2500, not $5k) at the back of the room; 13' back you could still get a 132" (d) image, which is plenty big...especially considering you'll only be seated ~11' back. In fact, you'd probably want to go a little bit smaller.
Put one row of seats or your sofa at around 11', so you're out from under the PJ and allow yourself some surround space, and you could be set. Of course, all of that depends on being able to use the whole 13 x 13. You can make adjustments to deal with the acoustic issues. You also have to worry about heat building up in so small a room. 3-4 people watching a movie, PJ, electronic gear; what's your cooling solution? Also, any chance you could house the equipment in like an adjacent closet or something? It would free up some space, and help keep the room a little cooler (plus it looks nice and clean).
CD
Put one row of seats or your sofa at around 11', so you're out from under the PJ and allow yourself some surround space, and you could be set. Of course, all of that depends on being able to use the whole 13 x 13. You can make adjustments to deal with the acoustic issues. You also have to worry about heat building up in so small a room. 3-4 people watching a movie, PJ, electronic gear; what's your cooling solution? Also, any chance you could house the equipment in like an adjacent closet or something? It would free up some space, and help keep the room a little cooler (plus it looks nice and clean).
CD