I went in to my local Best Buy yesterday and they had the display with a sign saying all SB DVDs 9.99 until September 3. None of the three I bought had 9.99 stickers on them, but all rang up at 9.99.
My vote would be setup #1. My setup is front: DM604 center: LRC600 surround: DM602 All series 2, I've had them for awhile, but they still sound good. When I was auditioning these speakers (they let me bring them home) I listened with the 602s as fronts as well and I found I got better...
I did it using a cd-rom (I also only have a cd burner) and it worked just fine. Just download the file, rename it lgromout.bin and write it to a cd. Then pop it in a sit back.