The RCA jacks on the sub are labeled "In" at the top and "Out" at the bottom. The connection at the sub should be the upper connector, not the lower. You have the correct side (the white side labeled "Left/Mono/LFE") but should be "In" to feed the sub. Mind you, the in and out jacks could be connected together in parallel, in which case it does not matter
but better safe than sorry.
Moving the right speaker away from the wall can improve the sound a little. It is a matter of trial and error and what your ears think is best. Not a big deal.
To test the surrounds, do you have a blue-ray player? (I see some cases in the photo.) Make sure you have surround source like a blue-ray, not cable-TV, and check what surround mode your AVR is in. Most will show on the front display. You can try changing surround modes with the remote or front controls. If connected via HDMI cables, most AVRs will detect the surround mode automatically and display it. Analogue audio cables (red white) won't do that.
How many channels does your AVR have? If it is a 7.1, then you need to connect to the surrounds to the correct speaker terminals and setup the AVR properly. For example, with my AVR, I have the surrounds connected to the "Surround" terminals and the "Surr. Back / Amp Assign" is not connected. Then in the AVR setup I have speakers assigned to main, centre, surround and sub, with nothing on the surround back. You'll need to refer to the owners manual and setup instructions for speaker connections and setup. Then find an action movie and look for a scene with lots of sound effects to check for rear sound. Another test is the short Dolby THX welcome video at the start of some discs. That uses all speakers.