Need upgrade, sell the B&W 602 and get a tube amp?

Look into a mellow/smooth interconnect.(Van den Hul D-102 III.) Also, if the 2802 has metal jumpers from pre to main in, consider replacing those also w/VDH. Will tame the harshness. Also, find a "Straightwire" retailer. Try out some Quartet spk. wire. They would probably loan you a set
to try out. Excellent wire at a very affordable price. If that doesn't do it, consider a spk. or amplification change.
IMHO, I don't think you'll go wrong with the VDH interconnects and you can most likely try out the spk. wire
on a loaner basis. Hope things work out. Bill

With 2K you could do tonnes of good things with this system. I'm not sure what your priorities are when it comes to 2 channel vs HT percentages, but I can only say that money spent on some good cables like some Virtual Dynamics Audition speaker and IC's will make a world of difference. But before before upgrading cables and revealing the nasties, please upgrade the Amp and source. Your problems will be solved with some half decent tube amps like the Rogue 88's which can be had for $800 on Audiogon sometimes. Please let us know what you do most with your system, or what kind of sound you'd like to get out of your upgrades.

This is primarily HT. The sound on movies is even a bit harsh. This all started of course when I heard a tube amp'd pair of Opera spkrs ($2500, tweeked set up at Stereo Unlimited). I would like a smoother sound out of the flix. I am starting to think that I should consider upgrading the reciever to something like a 4802 or Onkyo 9.1 and changing the front spkr wires.

Truthrider, that is a fair assessment. Be sure to audition them in your system if possible. Cables will also make a world of difference.

Wondering at what point it makes more sence to go with separates. I have heard that the 4802 (and similar) are not cost effective.