I use NHT'1.5ci in-walls as surrounds in my family room and the sound fantastic. The NHT's come with four foam bars to create an "box" around the speaker inside the wall studs. I filled the completed wall cavity with insulation and have been very pleased with the result.

I have also auditioned the Def. Tech in-walls and they are certainly worthy of a demo. Also check:

http://www.nhthifi.com/2004/products/product_detail.asp?ProductLineID=3&ProductID=75

I have M&K SW-95s as my main speakers and SW-85s as my surrounds in the ceiling. I'm very happy with them and I don't believe that they are a compromise at all. I auditioned B&Ws (forget the model) and thought they were excellent as well. The M&Ks were more crisp.

Follow this link for an older but very useful set of articles.

[This message has been edited by DollarBill (edited July 19, 2004).]