"N Range" Indoor Target Range
The "N Range" Shooting System is an indoor firing range, tastefully concealed in a wooden armoire. While the target is steel-backed to absorb any impact, the manufacturer requires the use of a custom round that is low noise, low smoke, and non-lethal. Where's the fun in that?
A basic model will set you back $1,300, but the "Executive" model pictured is $3,500.
Company Page (Flash, stupid looping music) [NRange.com via BallerHouse.com via Complex]

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A while back I read about a much more Make:ish "indoor" (should be: underground) shooting gallery. Basically 25m of concrete sewage pipe (1m gauge) buried in your back yard with a target at one end and a shooting post/bunker/counterstrike squad HQ at the other. Couldn't find the link at the moment, but it's out there... if you're desperate enough to google for it.
Now this is awesomely cool. Waaaaay to expensive, but cool.
The problem is that most towns have laws about discharging firearms within city limits, which this contraption will definately cause you to do. (if you live in the middle of the country, you can probably go shooting outside in your back yard, if you are smart about it). Of course, if you use "primer only" loads, or load with 1/3 the poweder, the odds of getting caught are almost nill. But, if the police ever search your house for any other reason and find this, that will be something that they could choose to charge you with.
Many years ago, Popular Something-or-other suggested primer-only loads with wax-plug "bullets" as a good home-shooting-range setup. Target was backed with a deflector so the wax splash went down into the box.
Seemed plausible to me. Of course I was 18 or so at the time, and even now I prefer either arrows or waterguns...
Go to a firing range...look at the floor littered with shell casings, the smell of combustion, and gun powder residue coating everything in the range...that could be your living room.
I'm reminded of the dart board we had on a wall in my college apartment. There were lots of holes in the wall around the board where the darts missed. Can't imagine what the wall behind this thing would look like, even without all the beer.....
Just use illegal immigrants. They move around so they're harder to hit, and if you do they can't go to the police and complain because they'd be deported! Way cheaper than this thing, too.
/political commentary
"Do they make these with a LCD tv mount on them?"
-Elvis
What if you miss?
Considering that real bullets can go through regular house walls pretty easily, you sure don't want to let anyone with bad aim use this setup.
Of course, I do wonder why anyone at all would want this in a part of their home where disguising it as furniture would be helpful. If you must shoot guns in your house, wouldn't you want to do it in, say, the basement? Or heck, the garage. But not the living areas!
Better make shure those drapes are closed...I don't think the SWAT team that responds will assume that you are using "primer only" rounds.
For a lot less money, you can buy a nice air pistol and use the Sunday paper as a backstop. They're a damn sight more affordable to shoot, too. For the price they're charging, you can buy one of the Olympic-quality 10-meter air pistols and pretend you're going to the National Championships.
We used to have a nice little air gun range set up in the basement. The targets were hung in front of large traffic cones, stuffed with paper. The cones acted like a funnel, and caught all of the pellets.
Don't these people have any idea how much lead is thrown up when the slug impacts the backstop?