Challenging small dedicated HT

[ballin_shogun]

Hello all... I finally got a new home and we've got an extra bedroom I can use for either a workout room or a HT. Obviously my preference is for a HT. My main goal is good acoustics and secondary is video. With that in mind I'm open to suggestions for laying out the room, acoustic treatments, seating, and the display (i'm going to use the polk speakers i already have). Basic dimensions are 10 x 10.5 with a closet.

I was thinking I would go plasma instead of PJ due to the smaller size of the room.

As far as audio I think 5.1 would work best but i've got the speakers for 7.1 if you think that would be better.

What furniture do you guys recommend to seat at least 2 people? Also how far back from the back wall do I need to sit for the best acoustics, and what acoustic treatments are recommended for a room of these dimensions.