Well, even though I'm opposed to most surround systems, I have to vouch for Kenwood as a great product to upgrade from KLH. A great product to upgrade from HK, Infinity, and Polk as well. I have their vintage home equipment, and I use some of their car gear, and it's a workhorse as far as power output, and will deliver!
My Kenwood VR-806 Rocks. I have had the neighbors complain a couple times that we are shaking their windows. Blackhawk Down and Bad Boyz II battle scenes are intense. Awesome surround effects on the Kenwood. I also have a 12" Sub that is turned way down to even be usable.