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!!!

I can certainly understand how better minds than mine, like Kal and Al, can disagree with cables being of issue in this system context. On the other hand, why not offer your own advice and guidance to the gentleman?