[Sonnie]

Personally I think the room is too small for 7.1. The rear speakers are going to be pretty much on top of you either way you go.

I also think your fronts are spread out way too far. I would move those to about 2' on each side of the TV. See how far from the TV you can get the left one without getting into the doorway and set the right one the same distance. This should improve your soundstage and imaging. Take your sub in place it in the far right corner and you should benefit from some nice room gain. You may have to tame a peak or two, but the low end extension should improve.