I am growing a little frustrated with my setup and for as much as I think I know about Home Theater setups, I am going to concede this one to the wisdom and knowledge of the true audiophiles here in this forum.
Here is my setup: (Keep in mind that I am still in the process of upgrading the front speakers)
-Yamaha V361 500 watt Receiver (5.1)
-Center Channel: JBL N-Center Two-way speaker
-Front L/R Mains: Pioneer S-H351F-K (They were a budget purchase years ago - I lived in an apartment until recently, so they were fine for that)
-Rears: JBL Venue Balcony
-Sub: Sony SA-W3000 12" front firing (rear port)
-Sub x-over setting: Full range
-RX x-over setting: Right now at 160Hz, but have tried all settings - this still delivers the best sound so far
-Speaker settings: Levels adjusted per SPL meter at optimal listening position; front L/R speakers set to "Large" in RX - all others set to "Small"
-Matrix decoder for simulated surround set to Pro Logic II (Movie) - DD or DTS when watching DVD's or HD Channels.
Instead of straight mounting the rears on the wall as prescribed, I engineered a swivel system using hinges (for my wife's sake because they're pretty large for the size room), that allows them to be pushed back flat against the wall unless we're actually watching a movie - then I bring them out so they deliver sound from either side as they are meant to do.

But I don't want to get off track..
My real question is - After hours of tweaking, calibrating levels and adjusting crossover settings; I am still not getting the warm, rich sound that I expected from the JBL's. I expected the center speaker to really be the highlight of this budget system and it's sounding a little muddy and "boxy" (I don't know how else to describe the sound).
I understand the implications of under-powering speakers, and I fear that my budget purchase of this Yamaha receiver may be the culprit. Let's just say that I'm a little disappointed that the dialog sounds like it's being delivered from inside a tin can at times (Understandably, my HDTV cable box is connected to the RX via optical and incoming cable may present less-than-stellar audio quality to begin with, but still - I got a bit of the same effect while watching DVD's - via digital coax connection to the RX.
Am I simply underpowering these speakers? Am I overthinking this too much? My instinct tells me so, but I would like to hear what the true pros have to say on the matter.
Many thanks in advance. Sorry for the extremely long post...