starting the basment HT, projector or lcd because of size of room

[shark420]

I asked some questions earlier but I am really thinking on what will be a better option. The room will be rectangle in shape and it will be 14 foot by 12 foot so it's not a very large room + ceilings are right around 7 feet tall. Due to the way the basement is laid out with the washer/dryer and bathroom as well as the steps going down I am thinking the screen will go on the shorter 12 foot wall but really concerned with the ceiling height for the projector screen. The projector will be a nicer HT but it will imo make the room smaller. Any and all advice is appriciated. BTW the screen I have now is 120 inch and does not leave much room on either side for the speakers as well as center channel and 2 subs below so maybe a smaller screen is the way to go.

thanks in advance