Since you can set up your room however you want, I'd first try putting the speakers on the longer wall about 10 feet apart, a foot or so away from the wall, and toed-in a few degrees. Set up your listening position so that you are about 10 feet away from each speaker.
This setup keeps your speakers far enough from the corners so you don't get any horn-loading effect. Keep in mind that it's only a starting point. I suggest moving your stereo equipment into the living room first and try any placement options you can think of until you find the one that's the best compromise between livability and listenability. Then move the rest of your furniture in.
Hmmm, but after you move the furniture in, the sound will reflect/absorb differently around the room so you'll have to start all over.
