Have not done an upgrade in a while and would like to do something to bring a "newness" back too it.

First of all, the hardware:

Toshiba 26HF66 26" HDTV
Pioneer VSX-815 7.1 Receiver
Sony PS3
TivoHD
Apple TV
Athena Micra 6 5.1 Speaker System
MacBook Pro 15"
Harmony 880 Remote

Connections:
PS3: Optical to receiver for audio, HDMI to TV for video.

TivoHD: Optical to receiver for audio, Component to TV for video.

Apple TV: Stereo RCA to receiver for audio, Component to TV for video. Used for watching HD podcasts and AirTunes speakers from MacBook iTunes.

7.1 Receiver is set to zones A&B and used old speakers run into bathroom for shower tunes.;)

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I'll upload pictures soon to show the setup, but the point of this thread is to ask what should I upgrade next? What would my "theater" benefit most from?

Move up to a larger (37" maybe) LCD TV for 1080p for Blu-Ray?

New 7.1 Receiver with HDMI inputs capable of TrueHD/DTS-MasterHD/Uncompressed audio?

New speaker system or pick up two more speakers and use 7.1? (Would make more sense to do after the receiver upgrade)

Or maybe something I haven't thought of as far as positioning, room layout, connections, aesthetics, ect?

Thanks,
Tim

http://farm3.static.flickr.com/2583/3721720202_7098029d56.jpg
Trying to fit it all in.
http://farm3.static.flickr.com/2501/3721719080_27c1e28e80.jpg
Surround Right
http://farm4.static.flickr.com/3265/3721718008_e0be762cce.jpg
Surround Left.
http://farm4.static.flickr.com/3428/3721739634_7f8efdb096.jpg
View from futon.

Apologies for the quality, taken from my Pre in a fairly dark room with flash.

What are the dimensions of the room?

Our space is just 13 ft. wall-to-wall but that allows room for a projector and screen.

I'm only posting cause you mentioned "theater" and it's an opinion thing but IMO to achieve Theater in the Home if at all possible you need a projector and screen - tvs available today can't deliver a "Theater" visual experience.

Even 12 ft. wall-to-wall would net a 10 1/2 ft. lens-to-screen throw distance and that distance easily capable of delivering the "wow" of theater.

Good Luck