No offese to you but I would not call your system a "Home Theater".
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Sure it has five speakers, a "sub" and makes noise, but I would hardly call it a "Home Theater"
Again, this is no offese to you or your budget.
For $500, I would have purchased an decent entry level receiver and a good pair of bookshelf speakers. Then, as I saved more money, I would add a sub, center and rears, in that order. The receiver and bookshelves alone would probably meet or exceed your current system's performance level. Not only that, but you most likely would not be having the issues you are now.
The "Rat Shack" sub someone mentioned before is not really any better than what he has currently. It is only good down to a measly 50hz.