Thanks for the response guys.
Sholling,
This, indeed is an unfinished room, and I have planned for future wiring of a 7.1 setup, specially so that I do not have wires running from the front to the rear. I have an underground wire housing, where I can add wires in future.
Sheep,
My primary cause for choosing this HTIB was that I am on a very small budget at the moment

For speakers, my budget is approx $450 for all speakers and $100 for a receiver. I would use my laptop as the DVD player, and my sources of input would be my laptop, TV, mp3 player and maybe a DVD player in future.
Regarding the placement, as you see, my family wants to put a dining table also in the room, and wall D has a glass window. Hence I seem to come to this arrangement. Have you any got any alternative ideas ?