My system is bright? I need help. thanks

At the source, try the micro-priced Herbiesaudiolab.com ($14.24) Grungebuster 2.2 CD mat. This has the effect of reducing brightness, or glare, while enabling excellent player performance. This can give the psychoacoustic effect of diminishing the relative level of the offending high frequencies, a "virtual equalizer" for the equalizer averse.
It is returnable if you find it is not part of the solution.
Marigoaudio.com wiring (IC, PC, speaker cable) delivers a Rolls-Royce sound which is revealing in a more comfortable manner than many other great brands - a "less intense", yet wonderful, presentation. I have only listened to successive generations of used Marigo products, but there is a distinctive reduction in perceived brightness in lesser quality recordings. Don't know about home trial policy.
Re-evaluate your use of the Panamax; there are a number of competitors which have been praised for their ability to tame harshness; see archived Audiogon disussions.
As posted already, the listening room itself is often needing work. Others will address this after you describe your starting point. Also, see archived Audiogon discussions for more ideas in that direction.

Lots of thanks to all of you for the fast response. About my room here are some aspects of it
1-Floor: carpet
2-Ceiling Cathedral
3-2 large windows facing the gear and speakers rright behing my sitting position. the have hunter douglas drapes covering them.

dimensions :18 x24 feet. i ll draw a simple sketch. horizontal is the 24 and vertical is the 18 foot

__________________________________________________
---plasma on wall--- s c
Cabinet { Gear } a
x x b
entrance i
( --table 2x4 ft---- n
( Ch e
( et ot L R t
( Ch ((((((S o F a))))))
(________________________________________________

Sorry guys this is the best i can do .here is the key

s=subwoofer of my home theater(super cube 1)
x= both andras
r=recliner
l=my listening position on the sofa
ch=chair
et=end table
ot=ottoman
the gear is in a tripple salamber cabinet that is 31 inches high and 22 inches deep and 66 inches wide.

i thanks alll again and i am happy to be on this site. i will try some og th suggestion. i do not have room or money for another now. and also musical fidelity is not bad it really sounds good expcept for the brighness. My ultimate plan if my wife lets me make a dedicated room in the basement , instead of an all storage basement! i can get something like a mac 402 or 602 and give a preout form the kw 500. and bi amp them after upgrading into Anrda 2 biwired so i can give musical fielity to either the woofers or nids and tweeters and the other to the mac. however the system will have total power of 1600 w, this is and so expensive.
thanks to all of you

I am sorry disregard the previous sketch , i tried doing it using letter and brackets it got confused when made into text by audiogon. Sorry for that

If there are drapes covering the window, and carpeting on the floor this will help tame aggressive highs. Soft furnishings also help. Wall hangings like decorative rugs are also very good. Fortunately my wife likes antique rugs, so acoustics and aesthetics need not be diametrically opposed !

I'm wondering if the cathedral ceilings are leading to lean bass, and you're compensating by turning the volume up a bit more, which then makes the treble a bit overbearing ?

I have found Cardas positioning to give good results, but since I have a small dedicated room, my problem is usually too much bass, not too little. Still, it's worth looking over the following links for future reference as speaker positioning makes a hugh difference to sound.

http://www.cardas.com/content.php?area=insights&content_id=26&pagestring=Room+Setup

http://www.audiophysic.de/aufstellung/index_e.html

Good luck. You have fine equipment, and I'd be more than a little annoyed if music listening wasn't enjoyable after that outlay. The problem may ultimately require cables or components to be changed, but speaker-room interaction is at the heart of many hifi problems.

Scientist73,
I'd suggest going with either Acoustic Zen Matrix Reference MkII or Audience AU24 from your cd player to integrated.
I think you can forget about AZ Silver Ref MkII because that will not deal with your brightness issue. Another interconnect to try is Nirvana S-L. AZ Matrix MkII will give you about 85% of performance of Silver Ref MkII but will be smoother. It contains silver though, so if it will be bright, you may want to go with AU24 interconnects. they will have a bit more air and will be a bit smoother on the top end, but won't give you the bass as deep as the AZ cable could. So there is a trade off. AU24 bass is still decent though and very clean. So that's that.
Also try running your amp directly into the wall. try Audience powerChord power cords on both the amp and cd player. Should smooth out and add a bit to the lower end which will most likely compensate each other if you use AU24 interconnects.
I appreciate that this is your family room, but at the minimum you can do to treat it without anyone complaining....check out stuff from
http://www.eighthnerve.com/products.html

Their Adapt rectangles and triangles usually blend into any decor. And they are very effective too.