What to do next . . .?

I will agree with most here, room is the key. Speaker positioning with enough "breathing" room is a must.Once you've decided where the system is going to be, I would advise to look over the power supplied to your system. Dedicated lines maybe ? This is a cheap upgrade, that will last forever no matter what gear you will plug into it.

And then, or now, get yourself a proven superior recording CD, of something you know well or enjoy very much. I'm not talking the regular remastering of an old popular album regularly sold at 9.99 $. Don't be cheap on that one. If it costs you 40 $, just get it !Surprises are available here. And remember that recording might not be available at your regular music store. Compare with what you are used to. It should, at least, show you if your system can give you more. After room treatment and power line improvement, if you don't get better performance from your actual gear, or don't hear any difference, then start looking for better units. But only then !

If your wife shows you enough mercy to install the system in the living room, remember you will need to distance your speakers from the wall to get the best out of them, unless they were specifically designed to be at the wall.That should test your wife's patience further more. Show her pictures of set ups here on Audiogon. Don't aggravate her by purchasing expensive equipment that don't improve anything ! At least have her shop with you, if she loves music of course! Otherwise, refrain from this last advice. A divorce is much more expensive than an audio system.

"If your wife shows you enough mercy to install the system in the living room, remember you will need to distance your speakers from the wall to get the best out of them, unless they were specifically designed to be at the wall.That should test your wife's patience further more. Show her pictures of set ups here on Audiogon. Don't aggravate her by purchasing expensive equipment that don't improve anything ! At least have her shop with you, if she loves music of course! Otherwise, refrain from this last advice. A divorce is much more expensive than an audio system."

We I did indeed convince the wify to let me put the system in the living room (see my post just above yours). Im on the long wall about 32" from the back and 8+ feet from any side wall. I sit about 4' from the back wall. I dont have much more flexiblity than that though.

Also for those with an Iphone, its probably been mentioned before, but download a level on the iphone and set all your tilting axis to a tenth of a degree. My speakers are set to 1.1 degree back lean. The sound is more open for sure and the sound stage deeper, not so much because of the lean, but just being in a right size room. But I always have issues with angle of the speakers to the sitting position. I find that if I keep the speakers square to the room to sound stage is broader but less focused. Right now Im about 3 to 5 degress tilted in, But these Vandersteens have always been a bit tempermental on placement.

I prefer long wall placement. The bass loss, might just be a standing wave. I'd hazard a guess that the overall bass quality has improved. IME, the Vandy's are quite sensitive to room and placement.

Unsound, Agreed, I prefer the long wall too. The midbass energy should be greatly improved and the stage should be much wider.

The Vandersteens don't like to be near side walls and with a 22' long wall there shouldn't be any problem there.

The area of concern is in the 16' dimension since Vandersteens with their rear firing woofer and in general should be away from the front wall for best tonal balance and imaging.

There is also a need for some type of room treatment behind the listening position.