Well, I took the plunge and ordered my 5.1 system as described in this post.
A/V Receiver: Outlaw 1070
DVD Player: Oppo DV-970HD
TV: Sony KD-XBR970
Speakers: front: 532-LR, center: 533-VAC, surround, 422-LR, Sub: S-8
Remote: Harmony 880
Everything else: nearly a thousand bucks worth of interconnects stands, antennas, power conditioners. (Psychotherapy not included)
This is all fitting into a very small space with the viewing position just 85" from the screen.

The surround speakers will be placed a bit further back than shown in the picture. The big question for me is how high the surrounds should be mounted. For movies, I know various sites recommend they be placed anywhere from 1 to 4 feet above the ear, but for music, it is suggested that all speakers be placed at ear level.
Since one of my prerequisites for this system is good stereo sound and SACD and DVD-A capability, I am inclined to stay with the ear level placement. How much would this alter the movie experience? Surround sound is important to many of the movies I'd be viewing, and I'd be prepared reluctantly to apply my engineering skills to providing a variable height mount for the surrounds.
I realize that in the end, I'm just going to have to experiment and decide for myself, but I'd like to hear about your experiences and opinions.