How do I design a home audio system?

I agree with S7Horton. Start with just a few rooms but set it up correctly.
1-If you want a system for just multiroom you still have to be careful with which receivers actually handle multiroom vs some that only have a line level output.
2-Do you want the ability to have different things on in different rooms?
3-How loud do you like it? Or,just background music.
4-For any real listening, you can probably find speakers for less than $200/pair but you get what you pay for. I've owned cheap in walls. Wow do they sound bad, echoey, crummy bass, etc...
My best advice for now, wire just the main rooms that will be used and put in/up good speakers. Buy a good impedance matching unit and hook up any source to see if it works. Yes, I actually melted a cheap impedance matching unit and finally bought a 12 zone niles.
My whole house system:
Anthem AVM-2 with multiroom
Denon DVD
100 disc cd changer
Dishnet satellite receiver with music channels
AMC 2445 90 watt/ch amp-I rarely use more than 2 pair of speakers at a time-so, I'm really not pushing the amp
Niles remote eyes(3)
Niles IRP 6
Niles IRP 2+
Niles RSL-6 impedance matching swithbox with 12volt triggers and remote on/off
3 Niles Intellipads where I don't want to use remotes
Various in wall/on wall speakers by Niles, Speakercraft, EV..... Need some in wall subs soon
Adcom line conditioner
About 1000 feet of 14 gauge wire
About 1000 feet of cat-5+ wire
Several universal remotes
This currently handles 5 rooms. I can/will add 2 more rooms for the cost of speakers and wire. Go price this and see what you are up against. Good luck for $1000.

Prpixel

Man that has gotta be fun. While i was in the military doing phone work i had to run my fair share of cables through some really crazy locations.
Man i enjoyed that work too.
I could only imagine how much fun i would have wiring up 500k-Mil+ systems. The only job that sounds more satisfying is the job that would afford one of those systems in yer own home.

Slappy,

I just program the home automation stuff. Too old, to beat up to do anything else. Most of these expensive systems use a lot of midfi equipment. Most of the money goes into making really easy to use and hiding the equipment. For the most part, people in this price range want it easy to use and don't want to see it. They can care less how it sounds.

In one install, a pair of Conrad-Johnson Synthesis reference speakers was buried in a cabinet over a RPTV. Had to lay the floor standing sats on thier sides and the two subs, which are about 6' high were also laying on their sides. In another system, a big pair of Duntechs were buried in a wall. Sacrilege!!!!

Have you had a chance to play around with the room EQ function on the Denon 3505 yet?

No not yet, i need to get a microphone.

Right now most of my funding is going to getting the basement up for rent, since the girly left i can rent it out and save a bunch of cash on mortgage payments.

Hopefully soon i can sport for one.

The thing i wonder though, is will any decent Mic work? or is there a specific type i need?

the denon mic runs what, 60 bucks? but none of the dealers ive seen carry them

i WOULD like to try it out though!

I've yet to find somebody who's tried the mic. I'm real curious to see how it works taming bad rooms.

Thanks,