severe limiting factor

I have the Thiel CS2.4s and can't imagine a problem with imaging. I have mine nearly 9 feet, center to center and sit about 11 feet from them. I am using a total POS Sony DVD player ($160.00 at Good Guys) and I have a great soundstage and imaging with my Rotel integrated doing the DAC work. I think your inital problem is indeed speaker placement. Try moving them further apart temporarily and with a slight toe in, maybe 5-10 degrees. I actually moved mine so far apart at one point that the center image started to disappear but a few inches closer and they snapped back into line. Also, how far from the rear walls do you have them?

Good luck, I love my Theils as do many folks on agon from what I have read.

I just upgraded my CD player (see my above post) to a Sony DVP-555ES and boy, what a difference! I will reiterate my belief that you need to get those suckers about 8 feet apart and sit roughly 9 feet back, slightly toed in. Try out hanging some blankets at the first reflection point as others have suggested. Beg, borrow or buy a different CDP and see if that helps. I also agree with the assessment that nearfield listening with the Thiels isn't a good idea. According to Thiel, 8 feet is the distance where the time aligned sound begins to gel.

Good luck and keep us posted. FWIW my wife and I hated our Thiels when we first got them, totally unlistenable. Our first step was the Genesis Digital Lens which made it enjoyable. The Sony DVP-555ES is icing on the cake.