What should be my next upgrade? Speakers?

Those that don't mention cables can usually use better ones.

Actually, they are listed in his system profile. I agree with Kal's comment, though, particularly in this price range.

Regards,
-- Al

What is your budget? I went from rf3 setup to rf83 setup. The difference is substantial. I'm using a rxv-2400 as a pre with an outlaw 7500 amp. Adding the amp really makes the rf83's sing. I think speaker upgrade and treating the room is probably most important IMO.

Yes, I agree that I didn't give much info : ) sorry.

System:
NAD NAD T-754 Multichamp
Denon DVD-2910 CD Player
Monster HTS-3600 AC filter
(2)Klipsch RF-3 Front Speaker
Klipsch RC-3 Center Channel
(2)Klipsch RS-3 Rear Speaker
Paradigm PDR-12 (SUBWOOFER)
Monster 400 HDMI Interconnect(DVD to TV-Video)
MIT Terminator 3 NT Interconnect(DVD to TV-Audio)
Analysis Plus, 2.5M Subwoofer Cable Interconnect
Monster Video 3 (Video), 3 Video Component Interconnect
Monster Toslink Interconnect
PS Audio C7 Power cord
PS Audio XStream Prelude Power cord
Monster Cable Z3 Reference Speaker cable
Isonodes Bright Star-Large ($20)-located under DVD player
Mitsibishi DLP 1080i only :) Bummer, no 1080p yet.....

About the room:
Size: 18' wide x 12' depth x 8' high
1-Large window 65" x 62"(located on right hand side of room on the 12' depth)

Floor:
Pergo wood with 5'x8' shag rug located in front of couch and TV

Furniture:
1 leather couch with ottoman
1 leather chair with ottoman

The couch is positioned center to the TV (9ft)

The two speakers are 12 ft apart and slighty toed in.

The 2 surround are located on the rear wall approx. 5.5' ft high and are parallel to the front 2 speakers. The center channel speaker is located right below TV and tilted up slightly. Hope this helps with letting you know what my system looks like. I plan on taking some pics soon. Thanks for any feedback.

80%+ of my time in this room is watching movies/HD TV.

Agree w/ Viridian- do not forget those cables!!!