Thanks for the suggestions. I'm hoping I can persuade my wife to soften her inflexible interior design tastes. I've come to the conclusion that anything other than acoustic panels with some depth will be a compromise in sound.
Acoustic ceiling paint???
Has anyone heard of such a thing? I will be painting my listening/living room soon and am wondering if there's a textured acoustic ceiling paint. Unfortunately, my wife has a strong influence on the room aesthetics otherwise acoustic panels would be used. I am looking to treat the ceiling with both absorption and difussion properties. In other words I'd like to soften the sound slightly. I also plan on treating the upper corners with cornerbusters.