Need help determining next upgrade - 3rd ATTEMPT

Small square rooms tend to be particularly problematical, and I second all of the responses that have focused on room treatments and speaker positioning. In fact, looking at the photo of your setup I would be very surprised if you did NOT have the kind of smearing problem you have described.

I also particularly second the person you quoted as having "demanded" that the rear wall be treated (assuming he was referring to the wall behind the listening position). You are undoubtedly seated very close to that wall. Reflections from it will arrive at your ears strongly, and without a great deal of delay in their arrival time relative to the direct arriving sound. Again, I would be very surprised if that were NOT a major contributor to the smearing you have described.

Also, as Mapman suggested the speakers are probably too close to the front wall (the wall behind them), and they are probably too far apart.

As an experiment, at least, I suggest that you try a "near field" arrangement, moving the speakers several feet out from the wall, placing them much closer together, and moving your listening position further from the rear wall (the wall behind the listening position). (Keep in mind, though, that if you get too close to the speakers their multiple drivers may not blend optimally). That should give you a better idea of how your present equipment is capable of performing under better acoustic circumstances, and whether upgrading any of it is necessary.

Good luck. Regards,
-- Al

Thanks Al, this speaker positioning was in response to a two-person seating layout, which is hard to do in this room. I had a friend over and we were auditioning cables. Was trying to widen out the stage a little. I did originally have the seats too close to the rear wall and we had to move them out. My typical arrangement has the speakers closer together.

In agreement with the person who said to treat your room with sound absorption. I would put monster bass traps behind your listening position. Best of Luck

Is there no way you can listen to them in a bigger room, perhaps at a friends house?

I had a room similar to this at one time. It was not easy to set up but what worked for me was using the Audio Physics method of speaker placement. It may be worth looking up and trying out. Almarg has suggested similar points in his post. Unfortunately you do not have a long wall but the system can still work with some modification. Put the listening chair within a couple feet of the back wall. Heavily treat the back wall, preferably with 4" panels. Then try moving your speakers into the room. In my set up they were half any in, but I also found that by moving them back towards the front wall in small increments that a third of the way in worked pretty good as well.

Another method you could try if it is feasible with your space is to use an off axis diagonal set up. If you visit the Decware website there is some good information on how to set this up. If anything you'll learn a lot about speaker placement which is not a bad skill to have.