"I would rather listen to mid-fi in a hi-fi room than hi-fi in a mid-fi room."
Couldn't have said it better Mr Werner! The mid fi system in the hi fi room will sound far better, image better.
Look at RPG panels, not those foam things. Get a mix of panels you hang flat against the wall (like a picture) and the ones that have an "L" shape (the leg of the L is sort of perpendicular to the wall, the top of L is against the wall, creating a small triangle space between the "L" and the wall).
Also, if you use speaker stands, getting mass under the speaker really help. Most cheapo stands ring horribly!
Brad
Brad