Majority of consumers (including your's truely) don't realize how important role a room plays in creating a great sounding theater experience.
One can spend thousands of dollars on a great speaker system, but still end up sounding like crap due to bad room acoustics that leads to all kinds of acoustical problems like bad echo/reverberation.
So, planning a home theater room begins with proper sizing and getting it's dimensional proportions right. Certain room shapes cause acoustical problems. I verified my room plans with a software tool and made sure i got the dimensions right.
Sound Isolation and Sound Proofing:
Generally home theaters generate a lot of low frequency noise that could really rattle rest of the house while you are enjoying your favourite movie in the basement. After spending so much money, you don't want to turn down the volume and waterdown the effect of the battle scene from the "Master and the Commander". Do you?
So, here are the basic principles: i) Increase the mass of the walls It is a simple principle. It is hard for the sound to shake a heavy thing than a very light thing. Normal rooms in the house are built with single layer of drywall. My theater room walls have two layers of sheetrock. Also, I am building double stud walls (twice as thick as standard 2"x4" stud wall) with staggered studs (see pic on right)
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Also, these extra thick wall cavities are filled with the R30 thermal insulation material which also doubles as well, as extra the mass barrier.
Also, if you notice carefully, I am using metal studs instead of the traditional wooden studs. Numerous tests have proven that metal stud walls provide superior sound control performance compared to the equivalent wooden stud construction.
ii) Decouple the walls and the ceiling Staggered studs (see pic above) and double stud walls mechanically decouples the walls and inhibits movement of sound freely via coupled surfaces. I couldn't do much about the ceiling (except for adding two layers of drywall) as I am working with a low ceiling height to begin with (one thing I really miss in this room is the height).
iii) Increase the level of sound absorptionIn my case, all that insulation inside double thick wall cavities help increase the sound absorption. It's effectiveness is increased in staggered, double studded wall.
iv) add mechanical damping to the systemWhen an airborne sound wave hits a surface like a room wall, it becomes structure borne and travel through the structure. At resonance frequencies even these decoupled walls will start vibrating. To stop this phenomenon, we need to damp the resonance.
To improve the damping properties of the HT room surfaces, I am using a specially formulated product for this purpose called "GreenGlue". GreenGlue is what the name suggests..it is a very sticky green glue compound that comes in large tubes. You need to apply this between the two layers of the drywall. So, it is like making a sheetrock sandwich. This is one of the reasons (besides increasing the mass), I have two layers of sheet rock walls.

See in the right hand side picture, second layer of sheet rock with green glue getting ready to be 'sandwiched' against another layer of sheet rock already in place and standing..
Also, last but not the least, I have sealed every conceivable joint, hole, crack..everything with an acoustic caulk (picture on the right..)