I agree. This HT space ought to be done right; or as right as my current and future budgets will allow.
Hm. I'd love to see you step up from a LCD pj. Can't do it with the budget though. Not everything at once, that's for darned sure.
Given the room's proportions, the RPTV is far too small. Thus, I feel that video should come first. Since I already have the rear speakers, the KEF system with a decent sub, and a servicable Onkyo 605, I can get by with my current audio outfit.
After seeing the pics, I'd agree. That very wide front wall, with normal height, just screams CIH to me. Problems are that anamorphics setups will blow your budget sky high, and if using the zoom method, you will need/want a very dark front wall, and probably ceiling too.
Which leads me to the pretty cabinetry. IF you are willing to let hide the cabinetry, a false wall would be pretty sweet there. No light reflections off of speakers, and you'd have the dark front wall to easily allow zoom method for CIH. Your 16:9 would be smaller than the wider ARs, but still a lot bigger than that RPTV!
The HT budget is only a temporary concern as it comes into play at the same time that I'm buying this house. In a few months, after all of the new home surprises are squelched, I'll be more comfortable with spending $ on the HT.
This could be a pretty long process, depending. If you go to AVS dedicated build threads, some people take
years, if only because its all DIY.
I am a little concerned as to where to place the left side speaker (once I go to 7.1). The windows are in the ideal location. But, that's a down the road problem...
TRUST ME in that you need to focus on something much more important. YES, I know the idea of surround sound is really cool. However, you REALLY need to research/understand the importance of the front sound stage. The importance of the front stage is SOOOO much greater, IMO.
I would get back on track with what BMX was saying early in the thread. Go with the Epson PJ and the Draper Premier Screen. I would then add two nice towers as you can afford it. You can use the "phantom" mode for a center and add a sub as soon as possible.
My vote is for LCoS pj if only for the greater fill ratio. Of course, I've got a pretty big 2.40:1 screen in mind!

If going phantom, you still have to consider the placement of the center when installing the display.
You cannot skimp on the sub, you must get one that will handle the volume of your room.
This seems to be the one point that we all agree on.
I went with a cheap manual screen when I got one because I had to compromise somewhere on cost, and that seemed like the place. I've had it for I think 3 years now and there's some slight waving (which has been there for at least 2 years and hasn't worsened), and have never been that disappointed in the picture at all. Certainly not $300 vs $2500 by any stretch.
Again, to repeatedly put my plug in, check out DaLite High Power. "Disappears", no hotspotting, very stiff and resistant to waves, extremely affordable. Cons: narrower viewing cone (I don't see a big problem in that room, cannot be AT). Again, I will vote either HP or AT. But, AT will increase costs for sure if micro perf or weave. Great audio though! Remember the soundstage I was referring to?....
I would buy an inexpensive screen for now, since it's the biggest way to save money with the least performance compromise (to me anyway), and much less of a loss to upgrade later. Here's a selection of manual screens across a wide range of prices - you could basically pick your price point and that's your compromise.
http://www.bhphotovideo.com/c/shop/4577/Manual_Wall_and_Ceiling_Screens.html
Still...unless video means a lot more to you than sound, the lower-priced ones are entirely adequate and the waving isn't that bad. I'll bet you could modify the screen carriage a bit to give more center support which should minimize that.
+1. Some mftrs will allow a heavy bar to pull down on the display. HPs don't have that, as they feel its unnecessary. The material itself is already heavy. It took 3 people to mount mine.