1. Rears are Harmon Kardon bookshelves of some model. Rest of the system is Axiom.
2. Very few DVDs have a 7.1 track. A lot more Blu-Rays will have a 7.1 track but only some will actually have originally recorded in true 7.1 channels. Many, especially BDs of older movies first released on DVD have a 7.1 track where they just extrapolated the extra channels from the surround channels.
3. Ooops, looks like you already knew half of what I stated above. I'm not sure exactly how the logic works. I am just bored on a conference call so answering what I can.
2. Two channel movies and music can be modified into 5.1 or even 7.1 using the same built in logic if your receiver supports it. A lot of people use the Dolby Pro Logic II setting on their receiver to do just that, convert stereo to 5.1
With a room that large, I'd definitely give 7.1 a try. I didn't like it enough to keep in my smaller 12x12 room but in the slightly longer 12 x 23 room, I am enjoying it quiet a bit.
EDIT: The most important thing is to calibrate all your speakers with a db meter so that one speaker or section doesn't overpower the others and the sound comes from where it is supposed to come from.
Last edited by Murph; 08/26/10 12:52 PM. Reason: added thought