Thanks for all the help.
While it looks like there is room to move the sofa forward I'd rather not get too much closer to the TV, it's just not quite practical and the diagram doesn't quite capture that. I'm also averse to shelves in front, I have a thin Samsung LED which, while it isn't mounted ultra low profile, I'd still rather keep the speakers fairly neat to the wall so based on the pictures would be buying the In/On Wall versions to get the best look. I appreciate the argument about taking them when moving, but I'd be ok with some repairing work in several years time if that's the case and don't see me moving for a while anwyay.
So based on the advice here's roughly what I have as a build (I looked on the auction page and the only in/on wall is the VP150 which is still over $100 more than the new VP100)
M22 - $488/pair
VP100 - $264 (can't see pricing for single M2 as suggested)
QS8 - $558 (could buy on auction site)
EP350 - $768 (going to the EP500 is an extra $500 so starts to really push things)
Total is $2078
I could in theory drop the QS8s for now and wait to buy them later. Could I even also drop the Sub and still get a good 3.0 system to start? If I was going to do that would it be worth switching to V150 for the centre?
I'm also stuck on a receiver choice. Bit lost within all the various options and blinded by features! Personally would prefer not to buy reconditioned, but appreciate the links posted earlier. Advice from elsewhere is to move away from something like the Onkyo SR608 which is well reviewed from a feature point of view but lacking the power in the system to really drive more expensive speakers. However I'm still a real newbie when learning the terms and what to look for and just working on reviews and other opinions.
