Best upgrade for the money ?

I agree, proper speaker placement is critical. If speakers are not properly placed...most notably your imaging, soundstaging & bass performance will suffer greatly. Take the Polks & position them properly...you will experience a large sonic improvement. Now I suggest you sell the Polks plus add another $700 to your profit & buy a pair of high end speakers (I can't suggest a particular speaker because I don't know how much you would get for the Polks, but trust me there are many better than Polk). Then take those speakers & position them properly to realize a HUUUUGE sonic improvement over your previous sound.

I agree with all of your postings - the polks are the weakest link. They will be the first to go. Power cables - will I hear a BIG improvement with upgraded ones or is this more of a minor tweak?? The other option I have considered is adding a DAC. How much will this improve things? I'll also start playing with speaker positioning once I decide on a new pair. What's the normal $ amount to spend on a good/not great pair. Thank you all for your input. I now have a place to start. Rob

Rob: Forget about the power cords for now. They will make a relativily minor improvement $ for $ as compared to speaker replacement. You need to decide on your speakers before considering a DAC or anything else. Everything is system dependent in order to achieve some sort of synergy. You can buy good used speakers starting at the $750 range & approach great at the $1500-$2000 range. As an example...I saw a pair of Totem 1's on audiogon for $750 which will blow out your Polk's, however they are limited in the low end. You also need to be care with the efficiecy of the speaker, as I'm not sure how many WPC your amp puts out. Hope this helps.

Get new speakers and get some reasonable power cords later.

Might want to look at paradigm speakers (great bargains and I have seen several steals here on AG)and a power condition (just for the general protection and help in sound. made a great differnce- If you want a reasonable price, monster 3500 is fine - you can get for 1/2 of list on AG or eBay