How to Achieve Great Imaging & Soundstage

Hey 'Goners,

While my primary system is in flux, I'm starting to think about revamping my second system, which employs monitor sized speakers in a small (16x16) living room. I love audible holigraphy!!! My desire is to put together a system that creates great 3D imaging and soundstage. While this thread may use my current setup as an example - its real intent is to get advice for/from all interested agoners about the most important factors required to achieve great imaging and soundstage: speakers, electronics, tweaks, room acoustics...

My current system consists of a Classe CAP-101 integrated attached to Triangle Titus 202 speakers using AQ Slate cables. The CD players vary from an Arcam FMJ CD23 to a Cary CD308, using Kimber PBJ IC's. The room is 16x16 and organized on the diaganol, with the speakers on either side of a loveseat (a necessary 'no-no' due to space constraints). The ceiling is doube-high and tilted down to the rear. I currently don't get much imaging at all, even if I remove the loveseat. The sound is overall good, though a bit bright, and I think the upper-end of the Titus speakers is a bit edgy and unrestrained - probably needs a shift in system synergy. It's a carpeted room with stuffed furniture, but the walls are bare and hard and there is a picture window with a fabric shade.

So what is most important: componentry or setup? While in San Francisco last week I audioned Totem Mani-2 and Model 1 speakers, as well as B&W N805's (all driven by a Rotel CDP, Aragon preamp, and ??? SS amp). The latter two speakers provided very good soundstage and imaging, but the Mani-2 wasn't as good. I note that the N805 appeared to get good imaging partly from its high frequency emphasis, and I was wondering whether the Model 1's achieved good imaging due to their small size. Is small size a big boon towards good imaging??? I'm also wondering how much difference the electronics could have been making. Even though imaging fell short in 1/3 speakers, how much are electronics a necessary key ingrediant?

So the questions I want to pose here are:

1) WHAT IS YOUR HIERCHIAL APPROACH TO ACHIEVING EXCELLENT IMAGING AND SOUNDSTAGE?

2) IS THERE ANY PARTICULAR GEAR THAT YOU WOULD HIGHLY RECOMMEND TO ACHIEVE THIS END?

I'll be attending CES in January, and will be listening for the best in this realm. But they only show current gear - and older, used components are a resource not to be ignored.

Thanks All.