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.

Thanks architect! Love that design. I considered a similar layout, but decided to go a different route. Mostly because moving the fireplace down the wall would result in 8-9' of cabinetry on one side. Maybe it would have looked ok, but I wasn't sold on that piece being so LONG. So unfortunately, at this point, fp stays. Womp, womp. Do you have thoughts on where the shelving should stop in relation to the mantel? Does just below seem odd to you? Will cutting the 10' tall wall exactly in half look off?

Thanks Ci_lantro for the code info! I looked up our local code and it's only 6 inches from the firebox for mantels and trim and combustible materials within 12 inches can only protrude an 1/8" for every inch away from the firebox. We have appx 22" of space now. Good info to have it we plan on putting the trim around it. We peeked behind to see where the drywall ends. We could take out the first row of brick but there is no drywall after that - and my drywall skills aren't such that I want to get into that mess (or pay someone to do it). Thanks everyone for the ideas. We have plans in the next week with a friend in the fireplace business and a family member familiar with the code so we'll pick their brains with some of these ideas!

I would have bottom cabinets built into both sides. It looks like perfect placement for a TV, so skip the shelving and mount your TV on one side of the fireplace and put artwork on the other side. Or the TV on one side and the wood shelves on the other side. Remove the mantle completely and leave the fireplace as is. You can paint the cabinets the same Greige as your cabinets, or the same white as your trim, depending on your furnishings. It might look nice to make them white and put your deep green color from the island on the backs of the shelving area.