I purchased a Denon 1706 receiver (6.1 system) and am just starting to research speakers. As part of my home theater set-up, I'm considering in-wall speakers but have heard that sound quality isn't as good. My budget is $1,000 and that would include installation. Room is approx 14x20 and if i don't get in-wall speakers, then i'm leaning toward Klipsch, Ascend or Paradigm.
Placing speakers inside any wall or structure can severly compromise the sound quality a system is capable of so it is only recommended as a last resort.
I would start with two nice speakers and upgrade as your budget allows. A center and a subwoofer would be my second and third acquisition.
Good luck and post pictures when you have it all set up an calibrated.