What should be my next upgrade? Speakers?

Re cables, for a good read that was written by a person who is both a noted authority and someone who sells (non-cable) product to both the audiophile and professional markets:

http://wiring.svconline.com/ar/avinstall_designer_cables_critical/index.htm

I think he does an excellent job of explaining why and how cables can and do sound different, while at the same time putting in proper perspective the nonsense and hype that tends to surround them.

Regards,
-- Al

"Re cables, for a good read that was written by a person who is both a noted authority and someone who sells (non-cable) product to both the audiophile and professional markets"

Oh oh! Looks like we gotta "cables do/don't matter" war brewin again!- lol.
For all the sides of that debate, just dig deeper into any audio forum, and I assure you you'll find one!

I've said it for years now..."show me someone who thinks that cables and wires don't make a sonic difference, and I'll show you some who's own system sounds mediocre to down right aweful at best!
I would name a few professional otherwise award winning engineer's names, but I won't to protect a few ego's. LOL!

I would upgrade your picture and leave the sound as is:

Pioneer Kuro (dazzling blacks and colors)
Panasonic BD 35 or 55 Blu Ray (best price versus performance)

Thanks for all the great feedback. Now, time to covince the wife....LOL.

Have you played around enough with speaker placement? I would try bringing the speakers in a bit closer to each other and reevaluate.