Here is a link to the setup I am going with. I know it is not the ideal setup, but will it work?

http://gallery.avsforum.com/data/507/67563layout.jpg

That setup will definitely work fine. The front 3 speakers are perfect. Since you don't have a side wall to your left, the back wall is the next best place for your surrounds. And you even have your Hsu subwoofer in Dr. Hsu's preferred location.

Let me jump in real quick...

What if he was going to be doing a 7.1 set up?

If the right QS8 were 6.5 feet up on the right wall, and the rears were on the back wall, would you recommend that the left surround (QS8) go on the back wall, on dangling from the ceiling?

How low woudl the speaker have to dangle from the ceiling to be Ok? Would 8 feet off the ground be ok (dangling from a 9 foot ceiling)?

Or would it be better the stand mount the left side surround?

I also considered doing the 7.1 setup, but didn't like my options for surrounds. Of course, the rear surrounds could go on the back wall. The surrounds would have to be ceiling mounted or on stands. I didn't get WAF and I particularly don't care for the look. If the room is in a designated theater room you could get away with either one. I would go with stands.