I most likely wouldn't go that route. I have decided to build a dedicated room and by that I mean installing a projector with a screen. Something like this:
Going to have some grey carpet put in, paint the walls a dark color, starry night paint on the ceiling and maybe some old classic movie posters on the walls. Going to have the front wall with the windows covered with the screen and built ins like in the picture, all done in black. Pretty simple. Ideally I would like to have three towers upfront but I have no idea how much those screens cost where the sounds can go through them. Worst case scenario I just have to use a traditional center channel speaker.
The problem I thought I was going to have was seating as the room is only 13 feet wide. But the wife thought we could do an L or U shaped sectional and grab one of those large soft ottomans with some trays for drinks and what not and also putting our feet up and relaxing. After measuring sectionals last night we will be able to make it work. Then maybe have some bean bag chairs in the storage closet on the other side of the room for extra seating if need be. I'm in Raleigh and have many furniture distributors/wholesalers around me so we will be able to come in at a lower cost than most people would be able to.
I'm probably going to wait to do this until a better projector comes out so I can do 4K at a lower cost but I'm going to try and look at that Sony 40ES 1080P projector and see if that is good enough. In these kind of situations I need to focus on what the room gives me and what I can actually accomplish. I can always upgrade the projector down the road.
On to the audio...
Thinking more and more about it I'm probably leaning towards something like the Ascend 340x3 and 200x4 and 2 subs up front. I think I'm going to have to wall mount the surrounds because of space and aesthetics. I'm going to probably have to put one of the surrounds in the cutout in the back of the room over the bar. I don't think I will be able to do dipole type of speakers because it might reflect weird against the wall in the cutout. I don't know how that would work when you tune everything.
As far as the subs go, I don't really know what I like. In this kind of setup, it makes sense to me to either go with 2 front ported or sealed subs. I'm thinking 2 HSU VTF3 MK5s would be pretty sweet or possibly even 2 HSU ULS15 MK2. Going the Rythmik route might get too expensive for the performance.
Any recommendations?