Steve,
First of all, let me join in welcoming you to HB. And, sadly, let me also join in the chorus of "your equipment is at fault." It's not only the machine, although that is a major component of the problem. It's also the
grinder (IMHO), as well as the coffee.
Now, keep in mind that -- even though some of us have been "crazy" enough to spend several thousands of dollars on equipment -- great espresso can be had at home for much less than that. But in the
hundreds-of-dollar arena, the pickings are slim and generally speaking
not to be found in places like Williams-Sonoma, Sur La Table, and the Cellar at Macy's.
I'm not a big fan of DeLonghi espresso machines, nor am I a fan of Capresso grinders such as yours. Sorry.
The beans are something we can discuss later.
I would certainly recommend upgrading both your grinder and your machine. As I said, this need not cost thousands, but it certainly will cost hundreds . . .
Some options for machines:
Some options for grinders:
Since I don't know your budget, I have kept all of these on the lower-end of things . . .
It's a place to start.
Cheers,
Jason