I use direct radiated (Monitor Audio Bronze - $300) and they're installed roughly 3 feet above and behind the last row of seats in the theater. They sound ok and do what they're suppose to do. Frankly, I've listened to allot of speakers and I've never had my socks blown off by a pair of surrounds; no matter what the cost. That said, other than playing SACD or DVD-A, I normally listen to 2-channel music.
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Dedicated HT 15Wx24Dx12H
Outlaw 7700/990
Pioneer Elite DV-79AVi
Panasonic AE900U
ML Aeon i
ML Cinema i
ML Descent
Monitor Audio Bronze
Panamax 5400-EX
Da-Lite 120" Fixed Screen
...and allot of goodies in between

EJ\'s Home Theater