I think the first thing you would want to consider is exactly where you (and your friends or family) will be sitting.
This fundamental placement dictates the best place to site your TV (or screen) as well as your speakers. Room size is important, for speaker placement, and seating distance is important for TV placement.
Once you nail down those fundamentals (seating and screen placement), then you can start with speaker placement.
One of the most important things to consider when shopping for in-wall, on-wall, or in-ceiling speakers is where you're going to place them. How you place your speakers depends on how you're going to listen to them, as well as what your room's architecture allows. Whether you're installing them in your current home or pre-wiring a home that's under construction, the guidelines below can help you get a speaker setup that sounds good and works with the build and design of your room.
Keep in mind that these are ideal guidelines, but in reality, you may not be able to place your speakers in these precise locations in every room. As you're reading these tips, make a note of which ones apply to your needs and goals, as well as which ones will work with your room's design.
After you've determined what type of speakers you'll need and how many, check out our article on choosing in-wall and in-ceiling speakers.You'll find helpful tips as well as key factors to consider when deciding between speaker models.
Here's a video that might help too:
You might also want to check out the systems from Sony--their latest Dolby Surround Sound receivers create some amazing sound, especially for small rooms.