What's wrong with this system?

I suggest dedicated lines first and then see what you have, wait at least a month before you change anything after installing the new lines.

A tube amp can be very neutral. My Audio Note Soro is the most neutral amp I have ever owned and it is superb. I recommend them to everyone who has an interest in tubes. It has an excellent phono section to boot.

If you do not buy tubes I would keep the NAD and change something else as I have read way too many raves about that amp to get rid of it...

Two more cents, as if you needed them... you will be happier with a better player. A Music Hall CD-25 might do it for you. I liked mine a lot, and even more for what it cost. Later on I sold it for a Shanling CD-S100 Mk II, which is in another league for not another league's worth of money. Unfortunately it's not for sale in the States AFAIK. But my point is that for under a grand you can get a player that will give you more of everything than your Cambridge.

I absolutely agree that the source is where to start upgrading.

Dedicated lines and power conditioning are certainly ways to go, (on down the longer audio highway) but considering your system, you'll get more bang for the buck with a cdp upgrade. As Marco stated, you certainly don't have to use the entire $1500 to move up to a much higher source level than you presently have. Buy a pair of Golden Cardas ref ICs, or something of that quality. You'll be on your way.

Purchase upgrades that you will use for now and forever..Fundamental upgrade that you can use under a Nad a Krell or an SET..An upgrade to a preamp speaker or CD..Audiopoints or Sistrum will give you a remarkable degree of improvement in every way..It will be the first time that you ever truly heard your system and will keep on ticking with your next system. These products will also improve the overall efficencey of your system..Yes I am a dealer..Eight years prior I was...well only a user..Tom

Hello,
Thanks to all for the valuable input. I think before I do anything I'm going to get an SPL meter and a test cd and see what's going on with my room, as some of you have suggested. Here are more details about the setup of the system. I live in a studio apartment (for now), and the 15x15 area I mentioned is actually only about half the room--the one where my system resides. I am not using any isolation equipment, and the amp and cd player each has its own shelf on a wooden cart-type thing, which will also be replaced soon. The components are plugged into a power strip from Accoustic Research (about $40), using the stock power cords. The speakers are 5' 4" apart and two feet away from the back wall. The left speaker is 3' 2" away from a side wall and 3' 8" away from a corner. There is about five feet of open space to the right of the right speaker. I know this is not ideal, but the speakers can't be moved around too much (the whole system can't be moved much). I think the corner is causing some boominess in the bass, and even at two feet off the wall the bass is overemphasized at times. Plugging the bottom ports on the speakers (there are two in the rear, top and bottom) tames the bass a bit, but results in an overall 'constricting' of the sound, which I don't like much. What I have tried to do is pull the speakers as far away from the wall as the room will allow so I don't have to plug the bass ports. The speakers are toed in about an inch. I have experimented with pulling them out very far away from the wall, not toeing them in, etc. They are spiked into the carpet, which is a medium pile. Is anyone familiar with these speakers? Maybe they are just not happy in my apartment. Either way, I do realize now that the Cambridge Audio is a weak point, and I am not impressed with the build quality of either the CA or the NAD (coarse, unbalanced volume control). Regarding replacement of the CD player, how would an Arcam like the CD62 or CD73 do? Thanks for all the suggestions, much appreciated.
Scott