Hi guys,
Thanks for the good info. I connected the CD player to the pre-amp using non-brand but what seems like otherwise decent, gold plated RCA cables using the analog output/inputs. To my surprise, while the harness is still there at higher volumes, since I was listening somewhat critically, the analog actually sounded a noticeable crisper and brighter than using the toslink. The toslink sounded slightly muffled in comparison. I'll get better cables next week to connect the pre-amp to the amp; maybe the combination of using CD analog outs and better pre-amp/amp cables will help.
Anyway, the harshness is still there regardless of toslink or analog.
So, based on the comments so far, that leads to speakers and/or the room (ignoring the cables for now). I'll try using the Q10's I have and see if that makes any difference. Will report back again later.
The room is fully carpeted but the drywall walls are bare and the cabinets are either dense wood or glass so reflections are probably possible.