Not sure where to start this, but first here's my equipment list:

$39 Magnavox DVD player using coaxial out for CD Player
Harmon Kardon AVR-245 Receiver (65wx2)
Quad 22L speakers (replaced CV E-710's)
CV SW-12 powered sub
12 guage "Wal-Mart" Speaker wire

I'm running the sub from the speaker outs and using that crossover, not the sub output as I don't have a cable at the moment.

I ordered the Quads unheard, based on reviews here and elsewhere. There are NO high end shops around, so I didn't do the thousand auditions like I was supposed to. I figured that since the CV's weren't real bright, I didn't want to jump into a brighter sounding speaker and the Quads would be a nice compromise from what I was used to.

Since adding the Quads, there is a noticable difference in sound. Some of those cute little words to help describe the improvements may include better imaging, more natural, dynamic, etc. The mid range was the most noticable improvement. Recordings are less muddy and you can here subtle details that you couldn't before, but I'm not 100% happy. I'd like some more high end punch. When I increase the treble to +2 db, I don't like the tone, but the highs aren't as crisp with the soft domes.

Anyway, what should be my next upgrade?
Will running the sub thru the sub out help improve the quality of the sound?
Is the digital signal coming out of my el cheapo DVD player "different" from the signal coming out of any other player?
Would using the HK as a pre and adding amps (suggestions welcome) for the mains help?
What are some of the possible bottlenecks and/or issues?

I enjoyed the warmer sound of the HK compared to other receivers, but with the combination of the Quads, I think I did a 1 + 1 = a NO NO and lost the high end.?????? Or, I'm just hearing the limitations of my cheap source? Or ??????????

Don't be afraid of hurting my feelings. There's no need to pull punches. Give it to me straight. I'm all ears.