Thanks for all the good info.
I'm surprised that you guys mentioned a rear projection TV. I was afraid that a projection TV (front or rear) would wash out in the bright light.
The speaker advice was very helpfull. I think I'll tend towards the 15" sub...since, more is better. I am even considering a bass transducer for the floor if my budget will allow. As for using full size speakers all around, thats not going to happen. The wife really, really, really does not want to see speakers for the rear surrounds since that is the part of the room that opens up to the dinning and kitchen areas. In-wall speakers everywhere would make her happy, but I have not heard many good reports about in-walls.