What should be the first component when upgrading?


I currently have this terrible system:

-Infinity SM 62 Bookshelves (on stands)
-Sherwood RX-4105 Receiver
-Source is Apple Powerbook (iTunes) or iPod

This summer I bought Grados SR80 headphones and they simply BLEW my mind. I heard things in my music which I've NEVER heard before (and this is with MP3's!). I listened to practically every song over again because of this increased resolution.

So naturally I wish to upgrade my above system. I've been researching the last few months and have come up with a couple of options:

-Epos ELS-3/Wharfedale Diamond 9.1/PSB Image B25 speakers
-Cambridge Audio 540a v2.0/NAD C320BEE/used Marantz/etc. integrated
-Hsu research VTF-2/STF-1/STF-2
-Standalone CD player (cambridge audio 540c?)/NAD ...

I just found a VTF-2 on here for 275 which seems like an awesome deal. Just wondering which component you guys would replace and in what order?

I was thinking of getting the sub first because I could use it with my existing system and then upgrade the other components in this order (integrated amp, speakers, cd player) ....

But after reading some more on the forums, maybe I should keep my existing system and upgrade the cd player first (garbage in= garbage out) ...

Or maybe I should get the integrated amp first?

Seriously seeking guidance in building this budget system as this will be my fisrt foray into budget hi-fi .... what would you guys do??
bobcuzi
Absolutely...front end first. There's nothing wrong with running a hard-drive based system though, so your Powerbook is a good start if you already have your library on iTunes (forget about the iPod as you'll be limited to the internal DAC there and it can be easily improved upon). Best to rip to your hard drive in Apple Lossless or WAV files, though, if you want to get the best reproduction. So then your next step would be a good USB DAC to feed from your laptop (in place of the CD player option), unless you absolutely have to play those silver platters. I'd then move on to your amp and finally speakers (or both at the same time if you can swing it), paying careful attention to pairing off these two components. Do you live in a small space? The speakers you mention are quite small aren't they? Not that small is bad, but there are better choices. If you are sticking to small, monitor speakers I'd point you towards offerings by Silverline and used options by Soliloquy (no longer made). What kind of music do you like to listen to? That may be an important question in choosing amp and speakers. Don't skimp on the interconnects and speaker cables either. You don't have to spend a fortune there, as many would have you believe...IMO of course.

Have fun!

Marco
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I agree with Tvad, as well, but not, perhaps as strongly as others. As you can see, it's winding up a coin toss which is preferred. It certainly isn't an egregious mistake purchasing your source first. Between amp and source? I'd put my money on (in) the source.
Thanks for the responses guys, I figured most of you would say source first. Which I do agree with also, although I think speakers can make a big difference.

So here's the deal, my budget right now is kind of limited. I'm talking like around 700 or so for two of the components.

If I had to buy only two components right now (which is what I am going to do), which would I buy? From what you guys recommended, I think I should go for source and amp first ... will that be a significant change from what I have now? I don't want to spend that much for just a small change because I'm limited by my old bookshelfs.

As for room size, my room is smaller (12 x 15), so I think bookshelfs on stands are enough. I'm going to forgo the sub for now and am pretty firmly set on the Wharfedale 9.1's. Any amp recommendations to match these speakers?

How should I partition the 700? 400-500 for amp and 200-300 for source? Sorry for all the questions, but I really value your guys opinion and do not want to make a mistake and buy the wrong components. Thanks again!