Recommendations for upgrade from 5.1 to 7.1


Being still in the state of upgrade frenzy (I am finishing up improving my main stereo rig - see other thread I started about a month ago), I like to hear your suggestions for system changes and/or improvement for my den based HT system.

Please note:
Planned changes are marked between [[brackets]].
The mix of components are to blame because of regular upgrades in my other music systems, relegating older or less suitable components to the HT system.

Source:
Video: Sony PS3 for blue ray movies and DVDs, HTPC. [[Oppo BDP 103 after uprading my current Samsung 55" LED HDTV to a 3D model]]
Music: HTPC/Logitech SB Touch [[after market power supply upgrade]], Sonic Frontiers SFT-1 as transport, Benchmark DAC1 [[Eastern Electric MiniMax Plus DAC with DEXA opamps upgrade]].

Amplification:
Krell Home Theater Standard [[7.1 processor but which one?]]
Krell KAV250a/3 + KAV250a [[selling them and get a better value/money 5 ch amp?]]

Speakers/sub:
Fronts: Duntech PCL400 (Black Knights) with Cardas binding posts (used to have Snell B Minor as fronts)
Center: 2x Snell ICS1000
[[Snell AMC800 in wall planned for 7.1]]
Surrounds: Snell AMC900 in wall
Sub: 2x Snell PS10 [[Velodyne DD-10 or one Linn Sizmik on ASC bass base]]

Power Conditioning:
Shunyata Hydra 4

Cabling:
IC: Cardas Golden Reference for L/R/C, Transparent Music Link for SR/SL
NordOst Silver Shadow for digital
Sonic Wave glass optical cable from the PS3 to Krell HTS [[any need to upgrade this cable?]]
SC: Audience AU24e for the fronts and center, Belden in wall for the rest
PC: Shunyata Python from Pconditioner to wall, the rest on a mix of Cardas Quadlink and Shunyata Venom3

Isolation: Black Diamond Racing cones/pucks under most devices [[will try Aurio, Symposium]], hockey pucks under the front speakers and subs.

Room treatment: 6" thick 48"x 24" Bass Traps on the side and back walls, thick curtain behind the system and front speakers on the long wall (best placement for the Duntechs) for a 9' x 12' basement room with hard wood floor on concrete and a relatively low ceiling of 7'. Two 8'x 5' carpets to reduce the echo. [[corner bass traps, maybe an acoustic panel on the ceiling right above the listening couch]]

What is my weakest link?

Of course YMMV but appreciate any suggestion to improve this system and/or improve the synergy between components in general and for a 7.1 processor specifically, thanks!
polyglot
I strongly disagree with the idea that 7.1 needs a large room. My 7.1 using Triangle Comets and a 15" Earthquake situated diagonally in the corner of a 16'x16' space gets outstanding results.

The biggest gain came from the room correction within my updated 7.1 receiver.

The LCR speakers are on a flat plane with the display. The left and right speakers are just slightly toed by approximately 3 degrees. The side speakers are mounted high on the walls aimed at the listening position. The rears are behind the couch at the rear wall aimed up at the ceiling.

Compared the previous 5.1 setup the matrixed surround is excellent.
Vicdamone,
Please read my first post: smaller speakers will work better in your room ( OP's room 9'x12'x7'H )
16'x16' vs 9'x12'
Triangle Comets vs Duntech PCL400 Black Knights
Vicdamone - the OP's room is 9 x 12 x 7. How do you put back speakers behind the couch in that size room? That extra 4' and 7' you have make a big difference. You square footage is 2.4 times that of the OP. You can certainly make 16 x 16 work. I am not convinced it is worth going 7.1 for 9x12.
Yep...room is too small to get the effect of 7.1...better off with 5.1 as it will still give the surround more effectively. I have a 7 ft ceiling and it does take that cubic foot out of my equasion as I needed to have mine dropped from the ceiling. But my room is LARGE and I have contained my system to the seating area for the surround effect.
Point taken, I will hence stick to 5.1 and either go for all in wall speaker setup for this room or merge the HT system with my main 2 channel system in the larger room and put a pool table in the den when the kids are in college.

As for the current HT equipment: any recommendation to improve the synergy between the components?