Need upgrade, sell the B&W 602 and get a tube amp?

With 2K you could do tonnes of good things with this system. I'm not sure what your priorities are when it comes to 2 channel vs HT percentages, but I can only say that money spent on some good cables like some Virtual Dynamics Audition speaker and IC's will make a world of difference. But before before upgrading cables and revealing the nasties, please upgrade the Amp and source. Your problems will be solved with some half decent tube amps like the Rogue 88's which can be had for $800 on Audiogon sometimes. Please let us know what you do most with your system, or what kind of sound you'd like to get out of your upgrades.

This is primarily HT. The sound on movies is even a bit harsh. This all started of course when I heard a tube amp'd pair of Opera spkrs ($2500, tweeked set up at Stereo Unlimited). I would like a smoother sound out of the flix. I am starting to think that I should consider upgrading the reciever to something like a 4802 or Onkyo 9.1 and changing the front spkr wires.

Truthrider, that is a fair assessment. Be sure to audition them in your system if possible. Cables will also make a world of difference.

Wondering at what point it makes more sence to go with separates. I have heard that the 4802 (and similar) are not cost effective.

Went with a Sunfire TGII and Sherbourn 5/1500. Quite a difference. We don't need to run it as loud to get the details. Very nice