Help me set up new stereo system

What do you currently store your I tunes library on? Is it cloud based or on a hard drive?
What kind of digital inputs does the DAC have? USB only or are there coax and/or Optical inputs?
If your current iTunes is in mp3 or lower resolution, I wouldn't worry to much about any of this, because you won't be able to hear a difference regardless.

To find out how your copy of iTunes is configured for ripping CDs go to 'Preferences' in the iTunes menus, click on the first icon on the left, 'General,' and click on the 'Import settings' button near the bottom right of that window.

If want to check on the files you already have in iTunes do this:
- When iTunes is open go to the 'View' menu at the top of the window.
- Select 'Column browser'
- In the window that opens put a check mark in the 'Kind' and 'Bit rate' boxes
- You'll probably have to open the iTunes window all the way or scroll over to the right to see the two new columns of information you just added.
- Depending on which version of iTunes you have the options will likely be, in alphabetical order:
-- AAC (Advanced Audio Coding), a lossy compression format similar to mp3
-- AIFF - the full CD resolution format on CDs
-- Apple Lossless - a compressed but lossless format that should sound almost identical to the CD
-- MP3 - a compressed format with three bit rate options
--WAV - an uncompressed format common in the PC world but not so much on Macs

Regarding bit rates, higher is better in terms of audio fidelity and files ripped in iTunes will range from something like 1400 kbps for an AIFF file to 128 kbps for an mp3 ripped at the lowest resolution.

It's true that mp3s aren't going to sound as good as lossless files on a system capable of resolving the difference but my experience is that mp3s at 256 or 320 kbps do benefit from a better DAC and the one in the Hegel is probably excellent.

Right now all of my music is on my MacBook Pro that the whole family uses for general use. I'm open to suggestions as far as buying a PC and external HD, and also to buying a Mac Mini. I'm really just looking for some guidance. Every place that I went to demo speakers was awesome, they would pull out an iPad and ask what I wanted to listen to....amazing. Gone are the days of having CD's stacked from floor to ceiling.

At least 85% of my iTunes library is AAC and purchased AAC. Since I threw out all my CD's years ago I have asked family and friends if I can borrow their CD's and re-rip them. Question is what to use to rip them, will iTunes now have duplicates in the library, do I use something other than iTunes, etc.

Thanks for the help. Have a decent investment in the Revel speakers and Hegel integrated and want to get the best sound I can.

The Hegel h300 has digital, analog and USB inputs.

My advice would be to get the MacMini to start. Having a computer dedicated to music playback is better than using a shared computer if you care about sound quality. If you like using iTunes as the library then configure it to import CDs as described previously. Personally I imported using AIFF. Then get Audirvana Plus software as the music playback tool. Hook up the MacMini to the Hegel via USB to play music through your system. There will be a learning curve with configuration but it really is not that hard.