Remodeling Advice

My living room doubles as a Home Theatre. I also have a great two channel system in a separate bedroom and have created a second surround sound system in my basement so the living room system is now redundant. My wife is tired of seeing the AV equipment in the room and she spends a lot more time there than I do. We do watch TV and the occasional movie in the living room system.
We are going to do some remodeling for other reasons but have decided that this is the time to make the living room over. There is a 3 season porch next to
the living room that we want to insulate to use year round
I was interested in perhaps getting a projector and a screen for the living room and doing away with the television on the wall. I also am interested in removing the floor standing speakers and getting in walls ( the wall is going to be opened anyways to accomodate some ducts for the porch). The AV rack will be relocated out of site to the porch and placed in some built in shelves.
I don't know a thing about projectors. Are they ok for routine TV viewing? I also could use advice about in wall speakers. The sub will not be in wall, as I have what are perhaps unrealistic fears about in wall subs causing some structural problems
Budget--I'd like to keep the projector to about $2500K, and the speakers to about $1500 but would go higher. My current speakers cost about 4 times this but I now envision using these mainly for TV and movies, as I will listen to most of my music in my other two listening areas.
Any advice would be appreciated. I'm just starting to investigate this project.