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.

Mine came with installation instructions and there were several options. So I think it depends on the manufacturer. But ours was supposed to be installed with drywall up to the edge of the black surround but that was not possible (even though that was the way it was displayed in the showroom.) Anyway, they sold a beauty ring in various styles for an additional 1000 bucks but we passed on that. In the end, there needed to be a space between the fp and the drywall, and we tiled up to that. Good luck.

Are the tiles installed horizontally around the fireplace opening? If they are, the spotting may well be from wood sap spitting out from the fire and landing on the tile. The spotting would be heaviest near the fireplace opening if this is the case. Should be relatively easy to fix by cleaning with paint thinner or similar product.

I would like to put something like this around my fireplace. Any ideas on material? Photo cred to Crate and Barrel.