My speakers don't "dissapear"

Equipment used: Krell 400xi, Krell DVD Standard, Focal Utopia Mico Be's.

I have had my system for a couple months now. I have tweaked and moved and adjusted (even rearranged my living room) to get the speakers to image and "disappear" but no luck. No matter what I do, I can clearly tell the sound is coming from the speakers, no soundstage.

Will more burn in help? I only have about 40 hrs on the equipment in it's current state.
If you're not already doing it I'd recommend putting a blanket or quilt over the plasma when you're listening to music.

My experience with this had pointed almost always to the speakers themselves and also how they interact with a particular room (probably why they disappeared better at Sound by Singer). If you go through different positions, toe-in, etc. and it's not working, might be time to borrow another pair of speakers that are known to disappear well (i.e. Joseph Audio, Totem, Vandersteen, Usher, etc.) just to see what happens. That's what I'd do because otherwise you might end up spending gobs of time and money trying to achieve something these speakers just don't want to do in your room and/or with your equipment.

Best of luck.
"stereo and tv is diagonally set up"

From your description, short of a defect in speaker wiring or such (doubtful) this may be working against you the most compared to the norm.

Also, what's the distance between the speakers and the walls?

Burn in time may also be an issue with this equipment according to others here more knledgeable on this than I.
Thanks for your further information. Here's my suggestion:
1. move the spkrs another foot (towards you) away from the screen.
2. experimentally, GET RID of the coffee table or at least get it out of the field between the speakers and you.
3. take the rug that's under the coffee table and put it in front of the space between the speakers. OR get a larger rug, covering most of the space between the speakers and the listening position.
Happy Listening!

The living room is rather "live" so I should probably look into room treatments as well.

Tile floor - BAD
Coffee table in front of speakers BAD

I assume your home is brick block/concrete with reflective walls - BAD (these do not breathe and they will reflect all the energy back into the room - a claustrophobic cluttered sound)

=> you need acoustic treatments in a bad way unless you can accept that it simply won't sound like it did at the dealer even if it has the potential to do so.
The way my house is built is rather unconventional. The living area is open to the dining area, but in a diagonal fashion. So the way it is set up now, there is no rear wall. The speakers are about a foot and a half away from the side walls. The side walls taper out away from where the system is set up. And yes, the house is all block and plaster.

Before I begin to rearrange again, I'm going to try these two suggestions. First, move the speakers out another foot to aleviate any interaction from the television screen. Second, fire the speakers straight ahead instead of toed in and hopefully, this will minimize any reflections from our coffee table.

As far as speaker cables are concerened, I'm upgrading from a 3M set of revision I red dawn cables to a 2M set of Revision II Red Dawn cables. Before receiving my quattro fil XLR's, I was using "the best" radio shack RCA's (they were temporary, don't flame) and it was a huge improvement moving up to the quattro fil balanced IC's.