Well, my upgrade for now is complete. I have added some room treatments, panels from ATS Acoustics, Aperion 6T for mains, Aperion 5C for center, AV123 MWF-15 for sub, Axiom QS8 and M2 for surrounds. My wife is probably going to cut me off for now, but I'll be adding more room treatments and bass traps as I can. Existing equipment is an older Samsung 56" 720p DLP, HK AVR-235, Xbox 360, Newpoint power conditioner, and pc. I moved the dvd player downstairs for my wife, so dvds are currently watched with the xbox or pc.
The room is a second floor bedroom that's bigger than normal, and works as a media room (use the pc on the tv) and my home office (if work knew the setup in my home office, I doubt it would have been approved...). I went 7.1 mostly because since I was able to buy speakers now (wife willing), I figured I better get them while I can. Once we have kids in a year or two, I'll have to get the basement finished and this stuff moved down there into a bigger room. I compromised on the location of the sides a bit because of a lack of studs, so the one is right on the side wall, so far it seems fine. If I decide I don't like it I may move the sides down onto stands.
Here's a few pics-