What to upgrade?

Thicker, more padded, household white items are easy and cheap tests to try just to see/hear if any difference at all before investing in panels. Good idea!

If effect is too much, try thinner quilt or reduce surface area covered as needed. Lots of easy household ways to absorb sound without specialized panels, as long as the wife approves. Relocating cushioned chairs or any soft asound absorbent item into the line of fire direct or reflected as well can also help "shape" the sound.

Re all of above. It is a question of balance. You lose highs if you have too much wall covered. Use a friend and mirrors to determine placement of modest size (2x2 ft) absorbent material at reflection points. What do you have for furniture in the room? Some "absorbent" (not leather)couches and chairs(lazy boys) can do wonders for bass. I would also look carefully at your support system for your equipment-especially the cd player to start. If you don't protect equipment from vibration then the sound will definitely suffer as volume increases. This is one of the big reasons the bigger better speakers have more mass as well as solid construction- to try to eliminate vibration from the drivers. I wouldn't spend a cent on equipment until your room and mechanical isolation are to your satisfaction. It will make a world of difference to what's bothering you- and is a great investment in your long term enjoyment. In this hobby you will be happier if you can appreciate getting good sound from a room is a necessary & educational process- that will also allow you to enhance your listening ear and get more enjoyment from the music. Hopefully helpful:)

MORE POWER...seperate's - go with a pre+amp comb of the same make. Sound will open up for sure :-)

ok, just a thought, The opening behind my listing position opens up to the rest of the house(I am in the upstairs loft)The back wall is about 3' high the opening is about 4' high and 15' wide. Would I benefit with some type of sound acoustics behind me?

I have never heard a problem with free space behind the listening position. I agree with Mapman that you should experiment improving the sound of your current system prior to upgrading. You will likely increase the return on upgrade dollars spent.

Materials for building ones own sound panels can be purchased from ATS acoustics.