There's lots of information out there about surround music.
I'd start by reading Tomlinson Holman's book
http://www.amazon.com/Surround-Sound-Second-Up-running/dp/0240808290/ref=dp_cp_ob_b_title_0. Bobby Owsinski's surroundassociates.com website has lots of info.
Listen to a lot of stuff:
Beck - Sea Change
Donald Fagen - Morph the Cat
Roxy Music - Avalon
Porcupine Tree - In Absentia
To record live acoustic events for surround mixing and distribution, you can use microphones or techniques that you already know. ORTF, X/Y, Blumlein pair, M/S, etc. with a pair or two of hall mics and spot mics for soloists. You can apply this to drum overheads, room mics, etc., for acoustic guitars, pianos, etc. in rock, jazz and pop.
5.1 is an ideal delivery method whether you have one channel or five. A mono mix is at its best delivered from a full range center channel. LCR stereo is almost always better than LR stereo. Quad - 4.0 - can sound great on a 5.1 system (the new Chicago Transit Authority release from Rhino Handmade is great fun
http://www.rhino.com/shop/product/chicago-chicago-transit-authority-dvd-quadraphonic). The LFE channel should probably never be used in a music mix.
Five identical speakers with a properly integrated subwoofer are needed. Bass Manaqement is simply the system crossover needed to integrate the subwoofer, as with the Blue Sky unit (I wouldn't use software for this - a plugin does not work at the right point in your gain stage, and will not deliver the best signal to noise compared to a hardware unit right before the power amplifiers). Whatever else you have done to your room acoustics will probably make your surround system work well.
Any audio interface with six or more outputs will work. You will need a hardware surround monitor controller to at least turn up and down the six speakers, like a Martinsound MultiMAX or that Blue Sky unit. I've used the Presonus Firestudio/MSR with good results.
Distribution is tough. You can't burn an SA-CD, you can burn a DVD-A but it'll cost a lot. You can burn a video DVD with 5.1 24/48 audio that plays in DVD-A players with Minnetonka DiskWelder Bronze, and a demo of that with an affordable upgrade came with SONAR Producer at one point. DTS and Dolby Digital encoders are expensive and by nature lossy. Fraunhofer has a Surround MP3 encoder for free (but it's MP3...).