Sorry for taking so long to reply. I was in New York last week and just couldn't get my damned internet service to work.
Steve,
The face of the baffle extension should always be flush with the face of the speaker baffle.
Ideally, when mounting a radiused edge cabinet, in order to minimize the gap you would cut the inner opening of the baffle extension small then rout a cove on the inner side to accommodate the cabinet edge. A Cove or Round Nose router bit with about a 1/8" larger radius than the cabinet radius would work.
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But this isn't a must. A simpler flush mounting still improves the situation dramatically with respect to edge diffraction since the 1/2" or 3/4" at most radius used on speaker cabinets is not large enough relative to the respective wavelengths to significantly reduce the first couple instances of diffraction induced frequency response ripple.
Turning to your 5.1 setup, one potential problem I can imagine is due to this 4' listening position. The closer the listen position is, the narrower the center baffle must be. So you run the risk that the angled front baffles will create a significant horn loading effect on the front monitors. If you can, I'd strongly recommend moving your listening position back. Don't worry about using "near field" monitors further away. This whole near field distinction is for any practical purpose a myth. 1m or 2m is not the near field in any respect in an average size room.
Yes, if it's not too much extra expense I'd recommend flush mounting the rear channels too.
Actually the wavelength at 80Hz is 167.3", twice what you calculated. In this frequency region the entire room comes into play, rather than the dimensions of any single partition – unless you have a large room. So don't worry too much about this. Make the baffles as large as is practical.
Sub crossovers are a tricky business and should really be custom designed to fit the particular set of speakers. Simply inserting an 80Hz crossover will not result in a flat response unless the subs and satellites have over 2 octaves of response overlap – certainly not the case with your K-RoK's. Sharp slopes help a little, but they have their own issues.
I did post some ideas regarding flush mounting, but I think the links to all the diagrams disappeared when I changed web sites. When I get the time soon, I'll repost this all in one thread – hopefully this week.
Kevin,
Wow, AR-2's, now that's vintage.

Are they the AR-2a model with the dome tweeter?
Either way, I'd say they're just too long in the tooth to be of any value as monitors these days. I'm not even sure you can find direct replacement drivers for these anymore. So you'd have to redesign the crossovers as well. No, these are vintage audio enthusiast speakers, not studio monitors. Though, I might describe NS10's the same way.
barefoot