Help with Speaker Placement (1 Viewer)

I am currently in the process of finishing my basement and my wife and I have agreed on a space for a TV and speaker system (see attached image). It is not the most ideal location, but it is the best we can do. I would like to do a 7.1 setup with in-wall or in-ceiling speakers, but I would settle for 5.1 if 7.1 is not possible. Do you have any suggestions for speaker placement if I want a 7.1? I was thinking I could put two surround speakers in the back wall and two in the ceiling, or put all four in the ceiling if that would provide better sound. I am open to all suggestions except moving the TV.

My budget for speakers is about $1000

For speakers I was thinking of:
Front: http://smile.amazon.com/Polk-Audio-265RT-In-wall-Speaker/dp/B004L9GWSK/ref=pd_sim_e_2?ie=UTF8&refRID=1REG71SKAS58G1TYY24E

Center: http://smile.amazon.com/Polk-Audio-Two-Way-Channel-In-Wall/dp/B004L9DGCK/ref=pd_bxgy_e_img_z

Rear: http://smile.amazon.com/Polk-Audio-RC85i-In-Wall-Speakers/dp/B00006I5O6/ref=pd_sim_e_6?ie=UTF8&refRID=01CMN1N7RXFTYN9506BX

Ceiling: http://smile.amazon.com/Polk-Audio-RC80i-In-Ceiling-Speakers/dp/B00006BMQT/ref=pd_sim_e_2?ie=UTF8&refRID=1C1DDSM39WYRHM2SGE4H

Thanks in advance.

I can't open the basement jpeg. But in general wall placement is better than ceiling placement. You most important speakers for movies are your fronts, then side surrounds and then rears. So putting the rears in the ceiling would be my least objectionable option.

Can't see the pic either...Front three, at least, need to be in-Wall.

Sam, did you really mean in-wall, or did you intend that to be on-wall?

Sorry, here is a link to the pic

http://ryansworld.com/basement.jpg

Don't know why you chose that layout. Couch and TV swapped would 100% better.And AI, the OP wants in-Wall.Why?Maybe he hasn't heard of KEF T, Def Tech Mythos or any one of the other hundreds of flat speakers out there.But back to the room. Placing the couch on the short wall(the furniture should be 60-70% in the room...so 20' room...furniture is 12-14', so on) allows a much more flexible 7.1 arrangement.