How do I get my soundstage back?

I seem to have lost my stage and am struggling to get it back, here's the story.
* My setup is set in a bay window with the speakers @ 7ft apart, the back outer edge of each box in about 8" from side/rear wall & inner edges at 15" these side walls taper back to the flat rear window wall of the Bay. In my old setup there was a 20" TV on a stand and a stereo cabnet 42" tall and 22" square. I had a nice high, wide and resonably deep stage. The stage reached pretty much to the the 8 foot high ceiling.
* Changes in setup:
The system is still in the bay but now there is a nice new 50" Pioneer Elite plasma in the middle on a stand that is 6ft long, 22" deep and 19" high the screen on the stand now is 51" high and 56" wide in total and all gear is now in or on this stand with the TV. The soundstage is now flat, no depth and sound has dropped to about 2-3 feet off the floor. To me the speakers are now much more visable you might say in the past they pretty much disapeared. I have played some with speaker placement but so far not having any luck, I even tried throwing a blanket over the TV to see if that would help but no luck.

What do you suggest I do or try to get back to square one?

Speakers - Paradigm Reference Studio 60V2's
Sub - Paradigm Servo 15v1
Power amps - Odyssey Audio Mono Extreme SE's
Preamps - S.F. Line2 SE+
CDP - Cary CD308 (solid state)

Thank for your help.
Take a look at the pictures of my system. I had the same problem as you. I have a 65" tv between my speakers. The acoustic treatments I have in my system will solve your problems.

Also, the blanket won't work. It won't absorb enough of the sound waves. You need the panel I use.

I have essentially the same room setup, I've found you can't put anything with that much height between speakers without losing soundstage. My equipment is now on very low racks (24" max. height) behind the speakers. I bet SS would be even better with no equipment between and behind speakers.
I've considered a home theatre setup, and the only way I would go is with a projection unit with a pull down screen.
I hate to say this, but "take out the new TV." Anything that big and wide between your speakers is going to play havoc with soundstaging.
The TV should be behind the front of the speakers. Also unplug the TV to see if there is electrical interaction issues as well as physical.

There are at least two easy to try remedies.

1. The first reflection point is now occupied with the plasma screen. I would first try a blanket over the plasma. It does make a difference, how much it does is a matter of point of view.

2. The isolation for the CD player and digital gear might have changed. Try a wooden block under the CD player, and if it helps get a real isolation platform.

Also if you have added a power conditioner when you added the plasma TV, try plugging in directly to the wall and see if it makes any difference.
first thing is make sure your tv is behind your speakers. look at my pics. i have a very large sound stage tall, wide and deep. no problems with my plasma between my speakers. i have also hear the blanket over the tv works, but it needs to be a very dense blanket
Copland, TacT or Rives Room Correction processors.
If you shop around on used market, you can get at least one of these for about 1K. Where conventional solutions fail there is little hope without professional advise and help. These unites are user friendly and very effective in what they do best, which is to correct your room's acoustic problems......
Thank you all for your replies and there are suggestion here that I will try.

Best Regards to all.
There is a product called Acoustic Systems resonators that would make the whole tv vanish!These devices act as focusing lenses and enable one to create a virtual soundstage within ones own room ( even if your room has major issues).The ASR's even control bass and soundstaging to the point of moving it backward or forward depending on ones listening preferences.I was very skeptical until I installed a complete set and had imaging to die for.Room correction devices disturb the natural phase of ones signal. I hope this helps and good luck Dennis
I second on the ASR's, simply amazing
ASR's sound interesting. Where do you buy them and what is the approximate cost?
Avatar and you should be able to google them and the ASR's as well.The ASR's aren't cheap but worth every penny in my opinion and truly set ones system free!!Good luck and happy hunting Dennis
Yes Bonnie and Darren at Avatar will take very good care of you. They know their stuff. The resonators are truly a remarkable product that works.
I like the fact that you have a large TV that doesn't look out of place compared to your speaker's.
Did you ever replace the PC to your '360?