You want the full surround-sound experience in your home theater with optimum audio quality and premium peripherals to match the high definition produced on your television screen. In a small space like yours, however, there just is not enough room for everything you want. You have to get creative to find new ways of getting the home entertainment you want in the home space that you have.
When you have a small space, square footage on the floor is at a premium. The key, then, is to go vertical. Instead of getting a large, bulky cabinet or stand, use mounts that let you attach your speakers and television right to your walls or your ceiling. The sturdiness of a set of high-quality mounts gives you greater confidence that your expensive home theater equipment stays put once you have gotten it all installed.
Media storage also becomes a serious issue if you have a large collection of DVDs. If you organize your collection into CD/DVD storage binders, recycle the cases and store hundreds of your discs in a space no bigger than a large photo album. If you prefer to keep the discs with their original cases, consider getting some wall-mounted shelving to store them right in your home theater room. Wall-mounted shelves are also ideal for your DVD player, cable box, gaming console and related electronics.
The key to making your small home theater seem spacious is to make sure your equipment makes as small a footprint on your limited square footage as possible. Getting as many items as possible up and off of the floor gives you more space to move around or add comfortable seating, allowing you to enjoy your home theater without feeling cramped.