Thanks for all the suggestions guys.
Having the wall built wont cost me a dime, the builder signed off in the house offer that so long as the utility room didnt move, I could configure the layout however I want. in your drawing, are you saying it should be a separate piece? I was thinking just extending the 8ft section to about 16ft total.
There is a small basement window on that 14' section at the top of the drawing, and the morning sun comes through it... at this stage of the house, its hard to say how it would affect viewing, but I suppose I could just put in some blackout blinds/curtains.
If the cable box, set top, reciever, etc. is in the utility room, isnt that too long a run for a good HDMI signal? I am running triple cat6 to wherever the TV goes, so I could go HDMI over cat6, but I'd prefer a direct HDMI cable run if at all possible.
This is a reason I thought that switching Rmassey's might work better, especially if you extend/enclose the 8' wall as you suggested.
The second row seating might be a bit out of my league, i dont know about raising the floor...
You actually build what's called a riser, which could be done later if you decide to intall a projection sytem at a later date.
I was thinking of just getting a nice sectional couch, where my good friends would be in the optimal viewing area, and the mediocre friends sit along the side, but that should still work with that layout also.
I do have an casino sized poker table I will be putting in that room somewhere also, so that layout looks like it would work well for that too. I am going to run conduit to the roof once the layout is decided in case I move to a projector later, but this TV is only about 6 months old, so not really considering a projector anytime soon, this new house is killing my wallet as it is.