Kbarkamian - You're fairly correct about the room/placement issues.
I switched the speaker sets the other day, bringing the Klipsch's upstairs and the Vandy's down. The Klipsch's are, in fact, worse at imaging than the 2ce's by a wide margin, even when properly spaced. However the 2ce's do struggle to image in the poor location. I could live with them there though if they weren't oversized (and the bass is considerably muddied too so close to the wall.) A pair of Model 1's might be an option though, but I have a feeling there are better imagers out there.
All told, it's really a double whammy having the poor imaging Klipsch's in the poor location.
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Thanks for all the suggestions folks, very helpful indeed.