It's a crappy old photo but I use to have one in my old house I sold in 2013, LOVED IT.
Had a 7 foot screen, HD receiver etc. The surroundings are what can make it though, you're right. I had the foam (in boxes with black fabric) on the walls and behind the seating. The seating was 3 wide theatre room chairs with the cup holder wedges obviously and it was raised 6-8 inches. Red carpeting, red curtain behind. Movie posters on walls and I also had some neat wall hangings of classic movies. It was a cool set up IMO. On the far right is the shelving with DVDs etc. and the stereo equipment was behind the screen in a closet.
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