Cleaned out the closet today...first time in the new house. The room is a mess but the closet is nicer now. I had to find a place for all the extra gear. I think when I finally get the wires run (cat5e, coax, hdmi, speakers, etc etc) I will use this as the production rack for the living room. Maybe with a nicer rack - who knows. But for now it's simple, and it works. The rack just barely fit into the closet with the trim at the bottom.
I think the other side of the closet will be the data rack... Poweredge rack mount server, storage array, network switch and uplink. Just need to go buy another rack and wire it up. Bottom of racks will probably be some rack mount APC or Tripplite units for redundancy, with dedicated 12V battery backups for the cable modem/network stack (no inverter = longer run times).
What's funny is I'm cleaning up so that there's more space on the floor in the actual office since her family is coming into town soon for our wedding and we need the space for them to sleep on since we only have one spare bed!
Also to think.. this entire rack (including the equipment) cost me less than $500 after all deals were said and done :)