Not happy yet

You may be able to improve your bass performance with speaker placement. Try pulling them away from the wall.

Thunders,Leafs,Snooker have some good points, as do others.
Lets not go overboard, or make too many changes at once,
but here are areas that need immediate attention.

1)Your CD player is really holding you back, there are no good Yamaha CDPs, since you have Rotel amp look for good used CDP here with 24/96 dac, like Rotel 991 which can be had for $600 used here. Also used Musical Fidelity A3CD,
Link Genki, Audio Refinement, Roksan Kandy/Caspian, Rega Planet and many others would make a huge improvement

2)Your interconnects, speaker cables, AC cords must be upgraded to better cables, the good news is there is huge selection of great used cables for any budget here at Audiogon. This will make a huge improvement, there are so many choices requires a seperate topic.

3)Very important to minimize room colorations/distortions.
You must put area rug (Persian or Turkish my preference)
between your listening seat and speakers, bare wood floors
are not good for music. Also place something in both corners of speaker wall to control sound distortions, large plant or decorative item. If your speakers are 6ft apart try to sit 6-8ft from speakers for best sound.

Keep the current preamp/power amp and speakers till these other areas are addressed.

My vote: replace the CD player and improve the room environment - forget about the cables and power cords (you've got bigger fish to fry!).

First, the CD player. You don't have to spend thousands of dollars here. There are a host of really good players for a $1,000 (Thule, Arcam, Classe - used). My recommendation, though, is that you buy a good used transport and buy an inexpensive but good DAC (Perpetual Tech, Monarchy, etc.). DAC prices are coming way down. Over the past twelve months I've compared some very expensive ones with these less expensive ones, and the difference is becoming fairly small.

Second, the room. Your room conditions suck. I know this becuase my room was fairly similar to yours. However, I've made a number of changes that have dramatically improved the sound performance. Without going into to too much detail, go to the TAS website (www.theabsolutesound.com), access "Free Articles" and read REG's article on the eight ways to improve your speaker perfomance. This is a great article and will address the host of problems you are facing in your room. After making all the changes in my room I have improved the soundstage and frequency response. It's a striking improvement.

Good luck, and enjoy the music!

The Musical Fidelity is a good choice.Better than the Rotel.I have heard both in a room with Monitor Audio speakers.The A3CD is better.Do the CD wait a couple of months.Them go from there.
Cables can wait.

Somebody dis'd me with neg points and I think I know why. Last but not least pull out the CP-35 and up-grade to a cp-60 with external power supply. That's the cherry on the cake. Dinner is served:~)