Looking at your room configuration, I don't see how you can easily do a 7.1 speaker configuration. You don't have enough room between the rear of your couch and the back speakers to get any added benefit. You're truly wasting your money going past 5.1 in this particular living room unless you can put the A/V equipment in a different room where you can spread out your surround speakers.
Could you possibly increase your speaker budget a tad? It's pretty darn tight as it is. You'll find that your options and the speaker quality will increase quite a bit if you can.
The Jamo set is only slightly better than what you currently have. I would think you would want to take the next step up in audio quality, which will demand an increased budget outlay. Not by a huge amount, relatively speaking, of course.
Ascend Acoustics.com package:
CMT-340 SE fronts
CMT-340 SE center
CBM-170 SE bookshelf surrounds (or go with HTM-200 SE's if wall mounting).
Total price: $1,216 shipping included or $1,158 with HTM-200 SE's (if you want the matching, fillable pedestal stands for the left/right CMT-340's, which turns them into towers, they're $140 extra for the pair when purchased together)http://www.ascendacoustics.com/
Klipsch RW-12d Subwoofer
Total price: $299.99 @ Newegg.comhttp://www.newegg.com/Product/Product.aspx?Item=N82E16882780078
Grand total: $1515.99 (or slightly less with the HTM-200 SE speakers)
This'll kick the snot out of the Jamo package and lay waste to what you have currently.