Can you guys recommend some decent in-walls?

In-walls are area where Paradigm excels, particularly their reference series. I was able to compare them directly to some B&W in-walls at the dealer as well as another brand I don't remember. It wasn't even close. Of course, in wall speakers involve substantial compromises but can be very pleasing overall if you understand the limitations (don't play too loud as you'll really excite the walls, limited frequency response, poor imaging). I have a pair of their reference in-walls in a 2nd system and they're very satisfying.
Best,

Skip the Polks. I got my parents a pair of their inwalls a few years ago. They like them but they are very dull with no life.

Another option would be to buy self powered speakers and run them off of something like an apple airport express. Then you can always upgrade a room if you spend a lot if time in there. I have some paradigms in the kitchen I run them that way and they turn on when they get a signal from the airport and off after 15 minutes of inactivity.

Thiel?

Dynaudio has some nice in wall speakers. Be forewarned that they like power.
http://www.dynaudio.com/int/home_loudspeaker_systems/installation_products/ip_24.php

I looked at them a while back for a friend and seemed like the Paradigms were at a good price/performance point. Definitive Technology also had some interesting products worth looking at. If you're willing to spend a little more there's Revel. Best of luck.