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Is there different gens of the Sonos Fives and when using them as surrounds do they need to be vertical or horizontal or does it matter? 

There is only one generation of the Five.

The Five replaced the Play:5 (Gen2) which is S2 capable and can also be used as a surround speaker.

You cannot mix and match these as surrounds. Need two of the same model.

When using as surrounds you can have them either horizontal or vertical as they will work either way.

The Play:5 (Gen1) is S1 only and cannot be used as a surround.