Using that same layout idea, you could use a larger monitor for each section with smaller 7" or so monitors around it. Some could be connected to a computer while others to CD output. The same CD output may be able to be split and run into each section, removing the need for some of what may take many devices. This would remove the projection space needs making for a flatter display.
on second read, i really like this idea, including the implied conversation between videos.
a large screen surrounded by smaller screens. and you say you can connect the large screen to a computer, and the smaller screens via a cd output cord?
could i do it all with splitters and never mind projection?