Should I move my son's room for nursery or not?

I'm having a hard time deciding what to do with the new baby coming. Our house is set up with two bedrooms across the hall and one in the very back thru the kitchen. I had originally felt that we would move my 3yr old to the back of the house and create a cool "Thomas" theme room for him so he felt special and not like we were taking away his room and banishing him or something. Plus we figured we would give him 2mo to get use to his new room before baby comes.

Now I'm thinking that even though it's a ways to walk during late night cries, maybe having baby in the back would be better since its away from the living room where my son likes to play (he's not the quietist child.) that way the baby is away from the chaos and loud noises. Not that we plan to be super quiet, we never were with my son but I'm not sure how he will be with new baby.

If you have two kids, did your toddler wake up the baby a lot? I need to make a decision soon so I can start the decorating etc.