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Chuck,
While I agree with the above members' posts; improving your speakers would be the best upgrade. However; a receiver upgrade would certainly give you, as you put it, . . . a better feeling of surround sound . . .
Although the Onkyo ht-s650 is a highly rated home-theater-in-a-box system, the receiver is a little out of date. A newer receiver with Auto Setup and Room EQ Adjustment would greatly improve "the feeling of surround sound." It might also make your life easier with the component switching feature.
I upgraded from a five year old Denon 2700 to a new Denon 2805. Although the receivers were comperable in output watts, etc. I was blown away with the sound after using the speaker auto-setup and EQ feature. It really brought out the best in my speakers.
So sure, new speakers or a new subwoofer, (like the affordable SVS PB10-ISD), would be nice; but since you have seven decent accoustically matched speakers and a subwoofer I say go ahead and look at a new receiver. Hell, if you can afford to float $500 for a couple days, take one for a test drive from Best Buy. If you don't think it's a big improvement, just return it.
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Jean Louise, Jean Louise stand up; Your father's passing.
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My DVD Collection
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