Thank you for the suggestions. I don't think it was the speakers, as my steel string guitar sounded OK with the same speakers. You might be onto something with the saddle though Bill. I haven't adjusted it, but I just took a closer look, and it does seem like there is a bit of a gap at the treble end.
Here is the bass side:
And here is the treble side:
Would I be right in thinking I just need to loosen off the strings, push the saddle in further, then re-tighten the strings?
This saddle seems to be ill adjusted in several ways. Actually it looks terrible maladjusted and not well done at all. First of all it doesn't have full contact with the bottom, secondly it seems to be too thin for the slot so that it's tilting forwards. Both problems can also be interrelated but do not need to. Thirdly it's not even evident form the picture that it is a bone saddle. If it's plastic, it's well worth to spent a few $$ on a bone saddle.
A well adjusted saddle has to 1stly be just right in size so that you can bring it in into the slot without exerting any force but it wouldn't fall out easily when you turn the guitar upside down, secondly, the bottom side has to touch the bottom of the slot in full length and width, so they have to be exactly parallel, If the slot is well cut, this means the bottom of the saddle bone has to be exactly perpendicular to the sides, if the slot is not well cut, you will always have problems, so you might consider to take the guitar to an experienced luthier for further adjustments.
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