The PLV-Z1 has a short throw distance, so 16' is too far to get an 80" picture. I don't own one yet though, that will be coming in a few months.
You should get a better sound system that an HTIB (home theater in a box) like that one. Get a decent receiver and some good speakers from a company like Paradigm. A real subwoofer is also a home theater necessity, look at SVS or Adire. Of course this is going to cost more than the HTIB, but the results will be a far superior and more enjoyable sound system.
