HTPC - Long Cable Use????

Here is my dilemma.

I am going to build a HTPC that will also serve as my primary PC.

Two main purposes: 1) Home Theater 2) Enough Ommph to run PhotShop on some very large (10MB+) files.

My room layout is not very flexible so my PC presently sits about 15 feet from my HDTV in line of sight. I will need to run some long cables no matter how I decide to proceed. The cables will have to run approx: 35 feet along two walls. Here is what I am considering.

Option #1 - keep pc in present location and run a 35ft HDMI cable to the TV/Receiver.

Option #2 - Locate the PC at the TV and run a 35 ft monitor cable to where my workstation "area" has to remain. Use wireless mouse and keyboard to traverse the approx. 15 feet of open air between the box and the work space.

Maybe I am missing something in this design??

Of course line loss is a concern to me in both situations and the quality of cabling may make things too expensive.

Any thoughts/help will be greatly appreciated!