I am also in favor of getting rid of the HTiB receiver and get the Onkyo JohnK haslinked to. you will be able to listen at higher volume levels which will help with the clarity from those lesser speakers. Then you can save up for some much better speakers, like M22s, Vp100, Qs4s. for a bit pricy, but still affordable system.

Jason
M80 v2
VP160 v3
QS8 v2
PB13 Ultra
Denon 3808
Samsung 85" Q70