thanks for the response,i should of said "home theater geek".
I'll just have to move things around etc see what gives. I just miss carpet flooring,but waf wants hard wood floors!! i guess i have to make her happy.
Get your wife to pick out some paintings and things for the walls, with your input, of course (as you live there too), and it may work out well for both of you. Heavy curtains are good acoustically for absorption of sound, so that is something to remember when considering what to do about windows.
Hardwood floors make it more difficult, but the addition of the rug you mentioned is a good start, as you observed yourself.
If, after you have all the furniture and things in the room that you and your wife want, then consider the acoustic panels if you still have a problem, though she might not like the look of them. (For echos, the primary culprit are hard opposing parallel surfaces, and so breaking up that is generally the primary concern in the placement of the panels to get rid of echos.)
In life, compromises are almost always necessary, as few have the money and space for a custom built room for their audio system. And, of course, with two people, there are two who need to be pleased, and so even more compromises are often necessary. But one can still have good sound even if one cannot have ideal sound.