I want to thank you all for your help.
Excuse me if I dint provide enough information in my inital post.
Here is my existing setup
Projector - Epson Home Cinema 2045 LCD Projector White
Receiver - Denon x3300
Speakers:
Front Tower - Polk Audio RTI A7
Center - Polk Audio CSi A6
Surround - Polk Audio FXIA6
Rear - Polk Audio T15
Sub - Polk Audio PSW505
Wiring - 14AWG 2-Conductor Speaker Wire
Room Size - 9.75x11 feet
distance between front tower speakers to couch - 9 feet
distance between surround speakers to couch - 5 feet
Receiver volume setting - more than 70% up but sound is not clean or loud enough
In such a small room and sitting 9 ft from the mains, you should be able to hit THX reference level with a little room to spare. If the sound is not clean, it is most likely the quality of your media source, media player, or both, but not the AVR.
I have had the X3400H (basically an updated X3300H) in my two channel system for two weeks. Compared to my separate preamp/power amps there really wasn't any clearly audible difference. You can go ahead and add a power amp, but don't expect night and day kind of improvements. In fact, you may or may not hear a difference at all if you keep everything else the same. No offence, some people are more prone to Placebo effect than others, but it could also be true that some can hear subtle differences while others cannot. It is the claim of night and day difference simply by adding an external amp, that I feel are not credible, or they define night and day differently.