First, I really appreciate everyone's help! I feel like everyone is excited about axiom speakers and excited about helping people. I appreciate the time.

I think I have decided to do a pair of m3ti's and a pair of QS8's, with a VP150 for center channel. That's higher than my original budget, but I think I will be happier in the end.

My final concern, however, is the placement of the QS8's. I have windows along the far wall and a huge opening. I updated a drawing at:
http://www.freewebs.com/epchristi/LIVING_ROOM2.jpg

The gist is that the rear corner only has 19 inches between the window and the back wall. If I place the 11" QS8 right next to the window, that would give me 8" to the back wall. Is that sufficient? (See drawing)

Or.. am I better off with another pair of m3ti's and directing them into the room as per my previous drawing?

I haven't picked out the subwoofer yet.. so input there would be appreciated.