I'm confused

DON'T BUY A 2 CHANNEL for music buy a Three because the Denon will not be able to match the volume of the center with a good 200watt 2 channel amp... You need to buy a good 3 channel amp to get the same volume/current across the front.

Since your room is so small and I use to have 2000watts 8ohms RMS in a 11'x11' room plus an 18" Velodyne Servo Sub.
I can say one thing.. Treat the room (first order reflections, bass traps, and damping behind your listening position) You system will clean up and effects and imaging will sharpen, and suddenly you won't seem to need as much power!

Thank you all for your inputs. If you haven't done so, yet you have some ideas for improvement, please post them here so that I can learn from your valuable experience.

For a quick-fix in this case, I should get the following two items with the first one as the highest priority.

1) Add a 3-channel amp to current Denon AVR.
2) Get rid of Monster Powerbar & get a better power surge
conditioner.
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Sean,

You may laugh, but at this moment, those two extra speakers are in the box in my bedroom. Are you familiar with such speakers?

I looked briefly and could not find the impedance of your speakers. Please check and post for us-8 ohms, 6 ohms, 4 ohms?

Double check your settings and be sure the speakers are set to "small". Make sure you are dumping as much as possible to the subwoofer. Downside here is your subwoofer will get overloaded, big time. A subwoofer capable of handling all your lower frequency needs is a great place to start. The low frequency range uses the vast majority of you receivers available power.

Turn off all the "loudness" buttons, built in eq's ect. These things can do major damage.

I have some confusion on the 5.1/7.1 details of your system. Honestly, physically remove the extra two speakers and start with a 5.1 system. For your room size this is especially important. I am not big on 7.1/6.1 for a few reasons, others have stated reasons in this tread. Currently I have all the gear to run these setup and choose not to. Removing these speakers will free up power for you receiver. Don't leave the speakers in this room, unused speakers do really weird things to the acoustics of the room.

Most cost effective solution-find a different hobby. Only joking. A three channel amp for the front three is the best place to start in my opinion.

The first place to start is to understand why an amplifier clips. Simplistically I believe the answer is the unit runs out of power. The straight truth here is the Denon is a very small unit. This is a given truth with any receiver. True, some on the largest models will "rock", but for the price one can do better.

A dedicated outlet/line is a line that runs directly from the circuit breaker to the outlet you plug things into. One always needs to install/have installed these lines. Finding out which outlets are on which lines and not plugging anything but HT gear helps, but is not dedicated. Not having the fridge/window ac on these same circuits is a big plus.

I seems from your original post you are willing to spend a few bucks. If want to crank thing up, start with separate amplification. If your looking for all the minor details in movies, sound separation ect. start looking at a dedicated processor(Outlaw mention). Your current Denon will perform all these functions currently, just not the amplification to suit your needs.

The power clean up posts are very valid, I just don't think your at this point. I think you have reached the available power limits on your Denon and are wanting more.

Good luck,
Marty

Lej: I have seen and heard these speakers. The installation was far from optimum and we only listened for a brief period of time. They are a relatively unique design, that is for sure. Sean
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Marty9876,
Sorry for I forgot to post, but the impedance is 8 ohms. Given such, should I change the setting for speakers on AVR to "small" per your recommendation? I figure out the advantage, but what is the disadvantage?

Is power conditioner a highly recommended gear for a 7-ch amp or even 3-ch powerful amp, especially when there is no dedicated outlet? Get rid of my Monster powerbar?

If I go w/ the separates like Outlaw, is it worth the money? Can most peoples ears differentiate the improvement in quality, especially when you mention minutes details in recording?