Home Theatre for Condo

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I'll be moving into a new condo late this year, so I'm hoping for some recommendations on building a new home theatre. Any advice greatly appreciated!

First off, the condo is 634 sq foot. I was planning on wallmounting a 37" LCD over the electric fireplace. As the space is reasonably small, I was thinking of building a very capable 2.1 system, which I can build up to 5.1 in several years time when I eventually move up to a townhouse.

The system I'm currently thinking of is:

TV: Sharp Aquos 37" LC-37D90U LCD (1080p)
HD DVD: Toshiba HD-A1
DVR: Motorola DCT6416
Receiver: Denon AVR-2807
Power Conditionner: APC H10
Remote Control: Logitech Harmony 880
Front Speakers: Paradigm Studio 20
Subwoofer: Paradigm Seismic 10 or UltraCube 10

This system will primarily be used for TV/Movies (70%) and CD listening (30%). My music tastes range from rock (Metallica) to electronica (Moby) to industrial (Nine Inch Nails) to pop (Madonna) to hip hop (Kanye West). I''m not interested in a heavy bass system that will bother my neighbours.

I'm considering the Studio 20 speakers as my fronts, until eventually moving them to my surrounds when I move to a bigger space. Are the Studio 20's a good fit for this environment? Can I get by without a centre channel (CC-470) for the interim? What should I be looking for in terms of bookshelf speaker stands, on hardwood floor?

Can anyone offer suggestions on receivers? Should I consider seperates? Also, I'm sure there must be stronger contenders than the two matching Paradigm subs I chose above, what would you recommend for a condo? Finally, what do you recommend for speaker placement in this environment (floorplan below)?