that room's large enough that you can have some separate seating areas. You wouldn't want just a huge sectional sofa thing aimed at the TV wall, right? At the side of the room not devoted to the TV, put some armchairs, a table, a sofa, bookshelves, whatever.

Do something to CREATE a smaller area for the TV. I'd think in a 25 x 25 room, if you ONLY had seating devoted to the TV, you'd need a tv so gargantuan it would be gross.

OTOH, if you've also got a dedicated living room area, separate from this very large room, maybe you really want to do a home theater thing? If so, I'd be looking at a nice large screen.... do you get to design the whole thing? So you can put a plasma or LCD up? 50 or 65 inches would be cool.

If you are building the whole thing from scratch, put the speakers in the walls or ceilings - we just re-did a 12 yr old entertainment center to 'fit' around a large flat panel, and we still ended up with a 'deep' piece, to fit the speakers!

S.