Just a bought house and have to work in my HT gear somehow; the space isn't ideal and I only see 2 options.

Here are some shots of the room:

Looking into the LR from the DR:
http://img.photobucket.com/albums/v472/InfernalMachine/House/livingroom1.jpg

A little closer:
http://img.photobucket.com/albums/v472/InfernalMachine/House/livingroom2.jpg

Looking out from the LR:
http://img.photobucket.com/albums/v472/InfernalMachine/House/fireplace2.jpg

Sliding doors on the right, picture window on the far wall:
http://img.photobucket.com/albums/v472/InfernalMachine/House/livingroom4.jpg

I was running a 7.1 setup previously (950 then, 990), given the layout of the room, I feel that I may have to go down *sniffle* to 5.1 (maybe 6.1 if I can work with the space above the sliding doors (livingroom4.jpg).

I can place the set (50" LCD) where the couch is in the livingroom1.jpg shot, with main viewing where the couch is in livingroom4.jpg, mains l/r of the set, sub to left of the far (big) window, component rack off to the right of the right speaker against the far wall (or swaped with the sub or left of the set), center below the set, surround l/r behind the couch at ear level (or tucked into the ceiling corners, above the windows which would require the purchase of smaller surrounds, but would allow for 6.1).

Corner loading (livingroom2.jpg) doesn't seem to be an option due to surround placement.

Current Speakers:

Klipsch RF3 x2 (mains)
Klipsch RC3 II x1 (center)
Klipsch RS3 x2 (sides)
Klipsch RS3 II x2 (rears)
Single SVS 20-39PC+ (sub)

My new house might not allow me to use anything speaker wise except the mains and center and Sub (which might be too much of an eyesore now given the room).

The surrounds are basically too much speaker for the space, the areas for placement can't handle speakers of that size and I don't want to add stands, to keep the open feel of the room, I'd like to wall mount.

How many people here are running smaller sattelites? Smaller than Bookshelf?

I'm not planning on moving anytime soon and there are no other options for setting up this area. This will be used for both HT and music (but I am not a 'stereo purist').

Given the small space, I think I might need to drop down to a smaller system.

How many people here are running smaller sattelites? Anyone dropped from towers to bookshelves/sattelites and been happy with the result? Bookshelf/sattelite combo? If so what brands?

Thanks!