If you knew then, what you know now...

You can buy a lot of great music for the price of a modest component.

Depending on what type of music you listen to, you're quite possibly listening to an effect more than the recreation of a "real" thing, and in this case, if it sounds good it probably is good.

The room is going to have a huge effect on how good things will ever sound.

A corrolary to that is that if you're not willing to modify / treat your room, you're going to be considerably more limited in the performance you can achieve.

An early question to ask is how much you value convenience vs. performance. CDs are a lot more convenient but many swear the only true performance is vinyl. A CD changer randomly playing tunes is great fun (as a transport only, of course), but many would say it's too big a sacrifice.

Spend the big bucks on the source. Go for the best even if the rest of the chain is worth only a few hundred. Buy second-hand and insure shipping for full value. Listen and read about others' experiences for a long time before buying. Then pay what you have to, to get what you want. Believe that having what you want will make a difference. Pass up a few hot deals if you're not quite sure. Listen, listen, listen and don't analyze the sound as you listen ; pay attention to how you feel instead. When you hear something that just seems to work, make notes on how you feel. Talk about your notes. Make audiophile friends, they're not all component-mad, they're almost all music lovers, and mine are princes.

Tobias, I would have to say that speakers are the most important, with a tip of the hat to Kthomas and room dynamics. Auditioning speakers on the dealers good equipment would be cheaper than buying the source and power only to be unhappy. If you know what good speakers can do with some elses good equipment then you're already ahead. With good speakers that work in your room I would think it would be easier to "get there". But I've been wrong before and thats why I make this comment. Regards.

Tobias: I am not disagreeing with you (the source is very important). But if that source is digital it is pretty hard (for me anyway) to go for the best I can afford at this time due to the SACD cloud that hangs over my head. I am very happy (now in retropspect) with my decision to purchase the Bel Canto DAC which will most likely make a nice companion to an SACD player at some point in the future. I was however in the beginning dissapointed with my decision due to the additional IC, power cord and isolation components needed for the seperate box. In this regard I feel that DAC's for standard playback are still a good focus at this time, unless of course in the future manufacturers decide to include better preformence (for standard playback) in the SACD models offered within my realistic price range. I have noticed a lot of pussyfooting going on as to how good the standard playback quality of even the current model $5K to $7K SACD players is and also notice that people are having the players modified in order to improve this method of playback. The Bel Canto is just my reference in that it is what I own and enjoy the sound of, but I guess that I am endorsing the purchase of any high quality DAC at this time in the event that you will add SACD to your system in the future. This is anyway how I have concentrated on the source in my situation, be it both mental and budgetary.

Go to many stores, audition lots of stuff. The first time i bought speakers, I only went to one store. I didn't have the speakers for very long. Ignore Stereophile's classification system. As a reference, it does not apply well to real stereo-assemblage situations. I also think it's important to be confident, not letting others dictate to you what is good or bad. The first time in a audio salon was a little intimidating for me, and i let myself be led by the salesman. Now, I've found that i get a lot farther by being friendly with the salesman while taking control of the audition/purchasing process. I put too much stock in the reviews, pro and amateur. Doing that can result in wasted money. Obviously, I've made lots of mistakes; thank god for return policies. Having fun is the most important. Screwing up in audio is much more difficult than getting good sound, so just relax.