Hey Sheep,
Almost embarassed to say, but these will be a FutureShop purchase. Biggest reason being their 90 day return policy.
Currently renovating my basement so won't be able to fire up the system for about another month so that will give me 2 months to make sure I like anything I buy because of a sale.
I do agree that the C500's are a bit big for the HT room (12x15) but I think they will suit the larger room (12x35) quite well. As I mentioned before the HT space is essentially missing the back wall. There is a half wall there to define the space, but in reality it is open, so for music the larger towers may fit the bill. Just my opinion though and I have been wrong before, many many times
I think I am going to go to Future Shop tomorow so I will see about getting a deal on a package all at once.
You gave me a bit to think about in terms of over powering the room with speakers. I will have to see what kind of deal I can get on a few setups and go from there.
Thanks again