Tony,
Since you already have experience with Paradigm I would suggest looking at the Paradigm Studio series of speakers. Having owned a pair I can only rave about the performance. The studio 20's and 40's are the bookshelf versions with the 60's and 100's being the floorstanding models. I had the 40's and quite honestly they were amazing. All but the 100's should be under $1000 which keeps the budget from breaking. The 60's would be a great choice if you are looking to get into a floorstanding speaker. If you view my system you will see B&W 600 series currently in use and they are on par with the studio series from Paradigm. Slight variations between the 2 lines with ultimately the user liking certain characteristics over others. Both the studio series and the 600 line from B&W would be a great improvement over the current set-up. One last note, whichever way you choose to go make sure to look at matching the L-C-R or left, right and center speaker from the same line and company as you want a seemless front end for theater applications.
Good luck.