i heard this system late last summer at the klipsch facility in indy, & was very impressed, w/ both music & movies. cannot exactly remember the room dimensions, but it was wider than my living room (16 x 25) & perhaps slightly longer. did play the system at fairly high listening levels on a couple of tracks & noticed no distortion. as a klipsch owner for over a year until i recently purchased the paradigm S8 for my fronts, i can say you can push a klipsch to very, very high levels w/ little or no distortion whatsoever, to the point of rock concert levels. only exception would be for certain movie lfe effects, & i only heard my rf-7 speakers distort once, perhaps twice at very high levels when showing off for friends (spl hit 103 w/ no distortion during depth charge scene in u-571). only time i remember distortion was at beginning of star wars 2 when silver spaceship is flying & coming in for landing, & this is an unfair situation to put a loudspeaker in as i don't have a sub & was running the fronts set to large.
spent some time listening to the thx system after several hours of listening to rf-7 in a seperate listening room w/ some accoustic treatments. if i remember correctly, all the walls in the thx listening room were covered w/ some sort of fabric or accoustic treatment. if your looking for a complete speaker system for a dedicated home theater room (particularly if the room will include "hiding" the speakers this is one system to take a serious look at. the only downside, at least for me, is they are not the most attractive things to look at.