Thanks for all of the suggestions. But you are right, Ajax. Ultimately, it would be my own ears that can decide whether the speaker placement is good or bad. I guess I will try mounting the left speaker on the wall first. If it turns out that it is really really bad, than I'll try position #2 or get a speaker stand for the revised position #1. If it's still acceptable, I guess I'll just leave it there.

I still have some time to make up my mind. I still need to put curtain over the big windows in the room, get couple book shelves to cover the bare wall at the back of the room, and maybe couple paintings to hang on the wall just to reduce the bare wall. Still need to look for a good A/V receiver too I don't think my 7 years old Pioneer is up to par with Axiom speakers.