My thoughts are your electronics will be decent but I wouldn't go to anything lower in quality. I'd get at least one sub, if not both, with using in wall. I agree with just going 5.1, the rears will not make suitable listening while at the bar anyway. You may want to consider a receiver with dual zone and put a pair of speakers closer to the bar, or opt for a second system just for music in the top of the T later as finance permits. I guess this probably didn't help trim the budget though.

I have a DLP 62" Toshiba and I have no idea what you all are talking about when you say it makes you dizzy. I sit probably too close at about 12 feet away and the effect is no different than any other TV. Price is coming down on LCD and I'd recommend that because of wall mount capability and DLP bulbs having to be replaced on an average of every 2,000 hours.

Isn't any project over budget in the end?