I had a friend who covered the entire ceiling and all the walls in his quad dorm room with the free cd's that OUC (the local college here) hands out. We figure there is around 5000+ cd's in that dorm, haha. I wish I had some more pics of it, but I only have a few crappy scans from my 35mm camera.
I once made a sort of mobile out of AOL CDs. I glued the printed sides of two CDs together, drilled a hole in the top, and tied a short length of fishing line to it. I tacked several dozen of these to my ceiling over my computer equipment. Looked great.
When we moved I didn't hang them back up. Decided to go with more of a "data-center" type professional look in my computer room, and they just didn't fit in to that image...
Also this one broke in 3 after about a year of "Use"... I guess putting a CD in the Microwave for 5 seconds does a cool light show and a nice pattern on the disk, but it weakens it if you want to "Use" it...
A reflective ceiling and a ceiling-mounted front projection system?
Sounds like a recipe for annoying reflections (from any light leaking from the projector itself, and the reflected upside-down 'double' it would produce) and colour distortions to me.
Ya I don't think putting cd's anywhere in your HT room like that is a good idea. The dorm room that had 5000+ cd's was a bugger for light reflecting, though it did provide an unbeatable party atmosphere where strobes and other lights were used, along with fog. Yup, it was the party rooms of all party rooms.