Sandman, I would go with option #1. Certainly the vp100 is more than enough for that size room, unless you've got a really tall ceiling. From what I've read, the qs8's are the way to go.

*Michael*
AV123 Refugee - X-LS Encore, X-Voce, X-Omnis, Elt-Dpa's
Denon AVR-591
Magnavox NB500MGX BDP