This reciever is a low end reciever.
I understand that. If you've outgrown your old one then it might be time to move on. People use receivers for a lot of reasons, one being that they can function as the control center for everything hooked up to it: cable, games, CD player, DVD player, turntable, etc. As you move up the receiver food chain you get more power, more connection capability, more features, more decoding options, etc. If you haven't read the forum's FAQ then this is the time to do so. It'll help you with a lot of good information that you can use to define your needs.
If i upgrade the reciever the klipsch should sound a little better until i can upgrade the speakers correct?
I don't know. Most Klipsch speakers have a fairly high sensitivity. It doesn't take a lot of power to drive them and if the room isn't gargantuan and the receiver's not being driven past its capabilities then it's a real tough call.
If you make a move slightly upwards to a receiver further up on a manufacturer's line then decide whatever Klipsch has isn't for you, you just might find yourself having bought the wrong receiver for these other speakers. Then what? Sell the receiver at a loss? Buy an amp to drive the new speakers? Find out that if you'd bought say a Yamaha it would have solved all your problems?
Its your money but I'd rather not see you making sliding motions side to side instead of walking straight.
Right now i can't do much with this reciever. What the guy pointed out to me was this reciever was not a 'discreet' reciever where the marantz and the other newer ones are which would improve the sound and add some flexibility if i wanted to add an amp later on. Am i going down the wrong road here?
No you're not. Again, go to the forum's FAQ to familiarize yourself with all these terms. It'll make you a more knowledgeable consumer and go a long way to knowing that you're not being snowed.
THe speakers do need to be upgraded no doubt but why add better speakers to a lousy reciever?
That's a fair point. At least right now you have sound. Maybe it's not the best but it puts you ahead of the game. If you're in the market for both items then it makes the most sense to pick your speakers first as that will go a long way in weeding out receivers that just don't cut it.
You might find this thread,
http://www.hometheaterforum.com/htfo...hreadid=198304 which dealt with a hypothetical 2K budget for a modest soup to nuts system to be of some help.
Give the matter more thought Ron. Maybe post back what your budget is for speakers and receiver as well as your room size. I'm sure you'll get a lot of useful suggestions and maybe one or two of them is right for you.