I'd have to agree with most of the responses so far, especially Avguygeorge & merge03@yahoo.com. From what I read and/or understand from your message, sound quality is important to you, not necessarily features. And there are some minor constraints regarding money, so building two separate systems, one dedicated for audio, the other for AV, will be expensive, even if you chose to "share" the speakers (you'll need to connect & disconnect the speakers cables to avoid any electrical problems to do this).
(Here are a couple of my recommendations based on what you did or did not say: DVD-Audio & SACD were not requirements, just better sounding CD - hence the current Panasonic DVD player and NAD 541/521 thoughts, neither of these units support either format that I am aware - though I love both the NAD players).
1. Your current Yamaha AVR is the weak point in your current system, no question. Get a good USED AVR or separates if you can afford it. Integra, Denon, Rotel & B&K all make good AVRs. An old B&K AVR202 would be good, and most of the Integras are a excellent choice, as well as the Rotel & Denon units. I have experience with all but the Denon AVRs, all sound wonderful for both CD and DVD. You can find most of these for several hundred dollars ($300-800). Recall that these units will actually be producing your sound, whether CD or DVD, so look for one that has a good quality DAC in it. For now you can still use your Panasonic DVD player as the transport.
2. Get some supporting surround speakers, as indicated in previous responses. For starters, almost anything would do. You'll be surprised at what this will do to your movie experience. You may end up watching a couple more movies to enjoy this new experience, that's OK.
3. Get a good transport to play both CD's & DVD's. Again, there are several NEW & USED out there for little money. For example I've read online that there is an Onkyo DVD player (NEW) that goes for cheap (about $70) and is very good to excellent. I would recommend, if you can, to look upward a bit more, for example Meridian's older 586 & 586.2 players are fantastic for both CD & DVD formats, and you can find a USED 586.2 around the $700 range, there are several others in this realm as well. Enough said, but get a solid transport and deliver the best signal possible to the DAC in the AVR.
4. You obviously have a PC, get a good sound card for it and hook that up to your new AVR. A great way to enjoy your CD's and might replace getting a dedicated CD player to do the same. Begin to build a PC-based music server if you haven't already.
5. Get good interconnects and speaker cables. No these don't need to be expensive, just good. I'm not sure what you are using on your current system, you only mentioned speaker cables. A good cable works, a bad cable will screw things up - and a "20 gauge Rat-shack zip cord" would not do you well, so you did good upgrading the speaker cables, though you might want to continue looking at other cost-effective alternatives.
The biggest thing you want to think about, is there are a lot of changes coming down soon, so what do you see in a year from now, maybe two, and how can you best build to that dream. You've got a good start with your speakers, and I hate to say to stay away from new equipment, someone's got to buy it, but your are only losing more money, because inevitably, you going to change and upgrade you system again, so keep the financial losses down if you can.
Todd
(Here are a couple of my recommendations based on what you did or did not say: DVD-Audio & SACD were not requirements, just better sounding CD - hence the current Panasonic DVD player and NAD 541/521 thoughts, neither of these units support either format that I am aware - though I love both the NAD players).
1. Your current Yamaha AVR is the weak point in your current system, no question. Get a good USED AVR or separates if you can afford it. Integra, Denon, Rotel & B&K all make good AVRs. An old B&K AVR202 would be good, and most of the Integras are a excellent choice, as well as the Rotel & Denon units. I have experience with all but the Denon AVRs, all sound wonderful for both CD and DVD. You can find most of these for several hundred dollars ($300-800). Recall that these units will actually be producing your sound, whether CD or DVD, so look for one that has a good quality DAC in it. For now you can still use your Panasonic DVD player as the transport.
2. Get some supporting surround speakers, as indicated in previous responses. For starters, almost anything would do. You'll be surprised at what this will do to your movie experience. You may end up watching a couple more movies to enjoy this new experience, that's OK.
3. Get a good transport to play both CD's & DVD's. Again, there are several NEW & USED out there for little money. For example I've read online that there is an Onkyo DVD player (NEW) that goes for cheap (about $70) and is very good to excellent. I would recommend, if you can, to look upward a bit more, for example Meridian's older 586 & 586.2 players are fantastic for both CD & DVD formats, and you can find a USED 586.2 around the $700 range, there are several others in this realm as well. Enough said, but get a solid transport and deliver the best signal possible to the DAC in the AVR.
4. You obviously have a PC, get a good sound card for it and hook that up to your new AVR. A great way to enjoy your CD's and might replace getting a dedicated CD player to do the same. Begin to build a PC-based music server if you haven't already.
5. Get good interconnects and speaker cables. No these don't need to be expensive, just good. I'm not sure what you are using on your current system, you only mentioned speaker cables. A good cable works, a bad cable will screw things up - and a "20 gauge Rat-shack zip cord" would not do you well, so you did good upgrading the speaker cables, though you might want to continue looking at other cost-effective alternatives.
The biggest thing you want to think about, is there are a lot of changes coming down soon, so what do you see in a year from now, maybe two, and how can you best build to that dream. You've got a good start with your speakers, and I hate to say to stay away from new equipment, someone's got to buy it, but your are only losing more money, because inevitably, you going to change and upgrade you system again, so keep the financial losses down if you can.
Todd