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The display itself should be centered and facing viewing area. The center speaker should be either above or below display and aimed at center of seating. Left and right speakers should be to side of display, and left and right surround speakers should be alongside and just behind seating, elevated a few feet above viewer's head.
Light should be as controllable as possible. Use opaque curtains to block all incoming light, and make sure all lights can be turned off. If nothing else, view only at night. Blocking out all light is essential to getting best picture. Also try to minimize noise in your home theater room setup - it should be as close to completely quiet as possible when no movies are playing.
Good home theater room setup will give you best most full size theater-like experience.
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