severe limiting factor

I just put together a system consisting of Thiel 3.5s, a Classe ca-200, an Anthem pre1-L, and an old Magnavox cd player. The cd player will be replaced soon, but for now I'm pretty disappointed. There is no soundstage or imaging to speak of. I have played with speaker placement and toe a little, but no luck.

Is it possible that the cd player is holding the system back from delivering what I'm looking for? Is there something else drastically wrong that I'm not aware of?

Any help would be greatly appreciated!