I agree with RGA - you should wait until you have some big bucks to spend. I actually like the setup you have now! The Paradigms are very nice speakers and you have a sub to fill in the bottom end. But with some funds, you could certainly improve on them.

The first thing I'd do to improve the sound is to work with speaker positioning. Try some different height stands for your Atoms. Try toe-ing them in or out, crossing them over in front of you, raising the tweeter above and below your ear level while seated, moving the speaker closer or further, etc, etc. You might be surprised to hear that your system works quite nicely and makes you rethink spending money... not that a more expensive system possibly wouldn't give you an overall improvement. But I'd strongly recommend you don't fall into the audiophile party line that suggests you "upgrade" your CD player first because it's the "source". CDP's aren't the problem with most systems. Look to your speakers and room acoustics first. If you want to work on your source, remember that it's NOT the CDP, it's the CD.