Save your money and buy some new music or gear or just leave the money in the bank!
Go to www.Audio Asylum.com and start reading Jon Risch's thoughts and discussions on room treatments. Lots of other guys have added to his excellent thoughts. There are also several other sites that offer good thoughts on room acoustics and how to accomplish it on the cheap. Do a search for "DECWARE". Read.
Every room is different and your going to have to read other peoples thoughts and relate them to your own room, then at least initially go get some of the cheap materials Jon recommends and try them. Wall padding can just be taped or tack to the wall with pins or whatever initially, cause you will need to experiment with position. In the end, you will want some of the panels 4 inches or so off the wall. But just to experiment, you can just tack it up. If you do not like the sound of it, you can always take most of it back (rolls of insulation for bass traps) to the lumberyard. If you like the initial sound, then go buy the rest of the burlap, polyester fill squares, poly loose batting, etc at WalMart or wherever. At least this way you get an initial taste of what room treatments can make for you while minimizing the initial risk and financial investment.
If you go buying Echo Busters, etc., you will get a good product I am sure and it will be more polished in its looks, but you could have achieved the same, or maybe done better for a whole lot less. Educate yourself.
Personally, I never realized how much difference room treatments and placement of them could make in the presentation of the sound, and how cheaply (compared to commercial units) one could construct these IMPORTANT accessories.
ALSO, Do not be afraid to pull your speakers out from the wall. Mine are over 5 feet. And I am just beginning this Thanksgiving Room Acoustics Marathon. Thank you Lord for STEREO and Turkey too!!!