I'm putting a flat panel over my TV, too, with a frame and some art that will pull down to keep it out of sight when not wanted. It allows all the seating of the room to be oriented in the same direction, which is also the 'veiw wall' in my house-- I won't have multiple focal points fighting for attention. BUT I have a backup plan: the wiring will also run to my 'second choice' location, in case turns out that the anti-above-the-TV people have a point. My fp is in a 'chase' [FP salesman told me that's the right word for installing it outside the footprint of the room], just like yours. I think it is very likely that I won't be able to have the FP and TV on at the same time. At least for plasma screens, 95 degrees is supposed to be some kind of magic number: warmer than that, and the tv suffers. How this translates to those who have plasmas but no AC is a mystery to me. Still, I'll go with an LCD, which is supposed to be more mechanically robust, and I'll keep a thermometer up there the first few times I try to run them at the same time. If your fp will accomodate it, a blower with ductwork that would carry some of the heat to a secondary location might be a good idea. I think it would be easier if the FP wasn't in a chase: you could have some vents etc. on the side to conduct cooler air to the tv area, warm air away from it. As to storage, though: I agree it would be tunnel like and ruin the look of a chased fireplace. The wall o' shelving/cabs thing mostly developed as a way to make fireplaces look like they were in chases when they weren't. Remember too that 'zero clearance' refers to the firebox: there are rules about the setback for protrusions at 90degrees to the fireplace face, varies depending on model, should be in your owner's manual. Perhaps you could have some matching cabs in the corners, as far from the FP as possible, with no connecting elements... My plan is to put the equipment in a bench like unit beside the FP, sort of like an extension of my raised hearth. It will have a kind of traditional look, as if its main function is to cuddle up as near the FP as possible. The equipment itself isn't attractive, so the less I see of it the better, and this will keep it below eye level. Haven't quite figured out how to face this bench, though; I want something to obscure the equipment, but still allow the remote control signals to penetrate. I'm thinking mission style slats backed by sheer black fabric might do it, though I hope a better solution will present itself. The media itself can be further away, in a cabinet outside the fireplace zone. Not ideal, but workable, I think.

You should consider a direct vent system. They are available as inserts for existing fireplaces or as fireplaces (to install where there is none or to replace a fireplace). If you are unfamiliar with direct vent, do a search in this forum to find out about them. Direct vent gas inserts are available in different sizes. They are essentially fireboxes inserted into existing fireboxes. So you can figure out if a particular system will fit your fireplace. If you do a google or bing search of direct vent gas inserts, the addresses of websites of various manufacturers will appear. So you can do you preliminary shopping on the Internet. Be aware that direct vent systems are costly and a bit complicated to install. So you need to shop around and make sure you have a really competent installer.

To answer questions, yes we gutted and opened up this home. We want our family room just inside the front door as it functions well for watching children playing outside. (Rather than a formal living room, but we want to create a NICE space) The dining room has the fireplace and is open to the kitchen, which has an amazing 10’ island with a bar height side with 4 seats and then a counter height end for food prep. We’re loving the kitchen tho still waiting on light fixtures and backsplash. The flow is working well for us but the furniture placement and how to highlight the fireplace and it’s area is the challenge! Thank you BTW we DO have another room that would serve as the formal dining room but we don’t have that need at this time and are using it as a lovely home/mom office and playroom, so toys stay in there and not all over the house.

Omg I LOVE Rookwood tiles! Yours are just gorgeous. Yeah, situation with the contractor is bizarre! Rookwood is fabulous. I spoke with their designers and they were able to design the layout fo the tiles for me based on my budget and what I was wanting with the roses and leaves. It's not bizarre. it's either that he hasn't a clue how to lay tile or more likely doesn't want to spend the money on a talented tile installer. My tile installation if I recall took a full day just for the tiles. Then grouting took another bit of time.