Upgrade B&W speakers or MArantz Receiver?

Ps- Steveaudio and I are talking two channel amps. Use the marants for the surround. Thats why your 800 is buying a much more natural sounding front channel.

Steveaudio's advice on finding 805's used is the best for your upgrade in sound, followed by amp and preamp upgrade. After securing the Matrix 805 upgrade, which I've seen as low as $600/pair used, i'd consider getting at least another outboard amp, then a dedicated pre/pro ultimately...even by the likes of Outlaw audio.
Forget receivers! Yes, upgrading your speakers will NO DOUBT be the best sonic improvment overall. (you'll run em as "small" REGARDLESS, on your pre/receiver anyway for movies at the very very least). After that you really need to consider separates in the near future. Receivers are sonically limited to higher noise level, less channel separation, less refinement, less dynamics(even in the preamp section), etc, etc. Basically, higher end refinement of sound comes from quality separates. And quality power improves even more!
Receivers only hope for qulaity is usually a digital connnection, running speakers as "small", connected dirrectly from a DVD player and such. Still, even here most dedicated pre pro's walk all over what a receiver can do...again, even something like used Acurus Act 3 and Outlaw audio 950.
I'd stay with a receiver as a budget budget only option. Then, I'd be looking for a separates upgrade as soon as possible.
Still, yeah, as an immediate upgrade I the 805 recommendation is as solid as they come for your next step.
Good luck

Excellent...
So here is what I gather.
A good quality Amp will make even my exisiting speakers sound better BUt If I really want good sound start with the speaker upgrade...And then Add a Quality Amp(Used with my existing receiver) and eventually get a separate pre-pro.
Hopefully I can acheive this in a year or 2...
For now Iam selling my surround and center crap and on the hunt for Matrix 805...
Thanks so much guys..
CHEERS!

Yep, that's about right! Really can't go wrong from what you just summed up Dharub. good luck
Then all you have to do is learn how to set everything up and tweak for good sound!...and learn acoustics considerations as well. Soooooooo much to learn here. The room/setup/calibrating/acoustics are easily 2/3's of your performance. Enjoy

I concur with Steveaudio...moving from your existing 601s...and staying with the B&W line(which seems like you want to do)...going to a B&W speaker that has an exposed tweeter such as the matrix 805s, etc.,will indeed be a substantial upgrade...and this is where B&W becomes "B&W" in my book...if possible keep your 601s for surrounds...they still are very good speakers for this application...and even for smaller rooms/seconds sytems,etc...I would also pass on the ROtel...just my .o2..