I don't steal!
Johnd: No, I don't steal! And besides, it would have been my parents that would have been ripping off your name. I can't vouch for them though!
Rapster,
I can't see why you would have to give your HTIB away. Unless, you can use this as an excuse to look for better stuff (i.e.: spouse approval). Depending on the brand of HTIB, I can't see why you cannot hook it up in the closet. If all the wires start in the closet, then it shouldn't be very hard to hook them up to your receiver and then place the speakers where the other ends come out. Unless, you don't like the speaker wire locations. The main problem I see with having the receiver in the closet is that you cannot see it to control it. Other people here with experience in this type of setup can probably give you better advice that I can about this type of setup. My TV and stereo gear is in one entertainment center, so I can see everything, including the spider-web of wires in behind!
If the speaker wires are not labeled, I may be able to help you figure out which one goes where. I assume that the wire ends are far enough apart that a multimeter probably wouldn't work to check for continuity. Then, you can use a battery and a flashlight bulb (or test light). Just get someone to hold both conductors of one end of a wire to both ends of the battery and you can go to each of the other ends of the wires with the light to see which one goes to where. Hope this helps more than it confuses!
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I just looked up the specs on your HTP 2600 system (I was also a bit too lazy this morning to delete what I said above and start over, so I just continued on). Judging simply by the specs and description of this system, I would bring this back for a refund, if you still can. Then, I would spend some time searching through the posts here and you will get a better idea of what to look for in a HT system. Also, as you look through the posts, you will understand why the 2600 system would not be a good choice. I don't know what your budget is, but there are certainly other setups that are affordable and would sound much, much better.