Naturally, my post got lost during "Internet issues"
Nice AVR - same one I just bought - great current prices on these!
Although I agree with the Ascends and Salk's being highly regarded (as evidenced by 2 suggestions for them already in this thread) another ID brand you might consider is Aperion as they are also well regarded and reviewed (on this site and others) and they have timbre-matched in-wall and in-ceiling speakers as well as cabinet designs.
One thing to keep in mind is that if you are truly committed to on-wall or in-wall speakers - you will definitely need to budget a pretty healthy amount for a good sub (or preferrably two). Almost all of the speakers from these brands are rear-ported designs and wall mounting them will significantly limit their bass extension.
If you can find some front-ported designs (and preferrably front-ported with adjustable boundry compensation circuits even) you may be more satisfied with the overall results. I would however, highly recommend against wall mounting your front (L/C/R) speakers, as I think you will be much more pleased with the results obtained by having them a little further out into the room. Obviously the choice is yours as are the (assumedly) WAF considerations - I'm just pointing out a potential limitation to your setup as indicated in your post.
