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Actually, efficient speakers play with less distortion so there is an advantage to using large, 'loud' speakers.

Buy the projector 1st...then buy a screen to match the projector.   Also, ideally your front and center speakers will be placed at ear level. Your surrounds are good at 6' high.

I recommend the Sherwood-5004 too. It's a fine player at a very reasonable price and you can play both blu-ray and dvd discs.  

just finished insulating the walls today. pictures are up at facebook if you have any comments of questions!