thanks for all the feedback guys.
beecee - yes, i was planning on putting the screen/plasma where the existing tv is.
room is a little complicated by the fact that my gas outlet is behind the sofa you see. this means i can either put a gas fluted fireplace there (for effect) or go with a portable unit. problem here is that potentially the heater and tv will be on opposite walls. Alternatives are of course to put the tv on opposite wall or move the gas outlet to other side. what do you guys think will be the best option?
the new sofa i got is one of those super versatile ones that can be configured many ways. I will change the configuration around every 2 months to give the room a different feel.
floor is polished concrete and walls are masonary with a gyprock front (should be good for running wires

).
this room is really the showpiece of the house so we want a killer system that doesnt take up a lot of space and adds to the whole contemporary feel of our tastes.
initial thoughts were to wall mount a 50in plasma, chase all cables behind wall and place an entertainment unit to house components next to cupboards (rear of right hand side on pic).
comments please
thanks
julie