Best next step to upgrade sound?

Thanks, all. So Blindjim, when you recommend an amp, do you mean add an external power amp via my AVR's preamp out? Do you think that would make a difference more than say, a dedicated CD only player?

Blindjim, Cerrot, thanks for the thoughtful responses, they are appreciated. What I am going to do first is spend some time listening to my modest system now and ask myself what it needs. The next step will most likely be an external amp or a dedicated cd player. But I'm also rethinking the whole "cd thing" as well. Why not just use the MacBook and an external DAC?

In terms of an amp, what I'd really be excited about is tube power. I enjoy the warm sound of tube amplifiers with my electric guitars, and I'm asking myself if that isn't the sound I'm looking for. I've got some decisions to make.

Kotta, if I use the analog outs on a CDP, is the receiver pre-amp bypassed? (please forgive the newbie question, I want to make sure I understand this correctly).

And another general question if you will: Is it generally desirable to use an analog RCA interconnect from CDP to receiver? (vs. digital coax or optical?)

I am interested in the prospect of a decent CDP -- say, under $1000 -- because I am curious of just how much a difference I would be able to hear with a modest system.

As for the power amp Blindjim suggests, my speakers do have 2 sets of binding posts, so there is the option to bi-amp, as well. Therefore, I am giving the amplifier idea serious consideration as well.

Thanks again to all of you for the great feedback...

Also, Timrhu, Bob: Room treatments ain't gonna happen, the system is in our living room - no dedicated listening room yet.

Blindjim, as to your recommendation of adding an external amp:

Will I be able to hear a difference at moderate volume levels? (Obviously this depends on amp quality) If it's a question of more power, I don't think I need that -- my AVR is 100W -- but if a quality external amp can offer increased sound benefit in most listening situations, that is something I will consider.

One thought I had is that I could use an external amp to power the front L + R channels, and use the AVR to power the center and surrounds. That way I would have the benefit of the amp for 2-channel listening, and I could purchase a 2 channel amp instead of a multi-channel. Thoughts?

It's been almost a year, so I'll update this thread for those who might be interested. I'll pose another question as well.

I ditched the HT Receiver and got myself a legit integrated (for me, multi-channel is overrated since don't watch a lot of films). I have also added a decent CDP, quality interconnects, speaker cable, and some power line stuff (conditioner, power cords). And wow, did the sound quality improve.

In fact, the only thing that is the same are my Infinity Beta 40 speakers. And I have to be honest, they don't sound that bad. I listened to a couple budget floorstanders recently - the Monitor Audio RS6 and the PSB Imagine T (I mentioned this in another thread). Neither caused me to want to pull out my wallet. I didn't care for the MA's treble, and while the Imagine T sounded better than my speakers, they were not better ENOUGH (and they were being driven by Bel Canto REF 500 monoblocks). So what I have concluded is this: It will behoove me to take my time with speaker selection, and it may end up that I'm going to spend quite a bit more than I thought I would.

So in the meantime, I am considering adding an external power amp to my current setup. My question: How important is it to match an external amp to my integrated if I'm not bi-amping? I can guess that a Rega Exon for example, would sound good with my Rega Mira. But what about something class D like Channel Island D100, or D200, or one of the PS Audio digital amps? I would plan on running a pre-out from my integrated. BTW, I'm asking about class D amps primarily because this is a living room system and space and appearance are considerations.

I'll check the D7 out, thanks. I don't see a lot written about Snell.