How do you determine how much to spend on speakers

Whoaru99, most people that suggest source is the most important (and this apply's to digital even more so) is because you really have to spend far more then $1k to get good digital. I've heard speakers as little as $1k used that I could live with, I'm not so sure I could do that with digital.

I've heard a number of setups that were inferior using great speakers and bad electronics, I've heard good setups using decent speakers, with great electronics that sounded...good. The fact that people support digital sources or sources in general has more to do with what you just suggested, perhaps there isn't as big a difference in lower end digital and that you have to actually invest quite a lump sum to get something that resembles music, at least digitally.

I'd certainly agree that top notch speakers should better when driven with good electronics.

I would love to sit in on a properly done ABX test comparing cheap, mediocre, and high-end gear to find out for myself just what, if any, differences there are. Funny thing is, when called to the carpet, most "pros" find some reason to not take the test. Wasn't there a big deal one time where some relatively famous golden eared people couldn't tell a lowly Yamaha receiver from a Pass amplifier setup?

A number of reviews have favorably compared the Benchmark DAC1 to units costing several times more - but there are tons of reviews that come to the same conclusion on any number of pieces, "Comparable to units costing much more." What does that really mean? My interpretation of it is (from the reviewer's perspective) "I think I hear a difference..."

Hey, don't take it the wrong way, if you have tons of disposable income, good for you. I have no problem with that. You are entitled to spend it any way you choose.

The only problem I have is when I hear stuff like "there is so much difference in component X once you get past Y dollars" passed off as fact instead of what it really is, opinion backed up by anecdotal evidence.

As much as possible! Then you can slowly upgrade your other components. BUT pick the best full range speaker your budget and room can support or if you think you may move to a bigger domicle...the best your future room might support. If you like bass then find a big enough speaker to give you that. There's plenty decent mid-fi amps/preamps to buy to get started. I prefer Thiel and Dunlavy. A pair of Dunlavy SC IVs can be had cheap on Audiogon. Company no longer in business however. If you go Thiel then I'd say the 3.6 or 2.4 would be minimums, but the CS 6 would best support my theory. In my ugrade process for electronics the first step up to the "big leagues" would be in source components (CD/SACd player and/or turntable/cartrigde/arm). short answer is therfore "as much as possible on speakers as per your budget".

Whoaru, as you can probably agree, the second the Sony's and JVC's of the world hit the home electronics industry in the early 80's all bets were off with fact. The fact is you can no longer measure facts, because the entire industry was turned on its head with inaccurate measurements...THAT is when the industry (mostly seasoned audiophiles) turned to using there ears instead of measured spec. I won't dispute that some companies and magazines in general exploit the ear first approach.

Alot of the science behind audio was taken out of audio because the science was corrput to begin with. If you actually think about it, using your ears is the only way to distinguish good audio. In regards to a dbx, its rubbish. The second you impose a test on anybody all bets are off. Most of the dbx's are tainted in the way they are setup, usually in favor of the theory of the person who is hosting the test.

In closing, most dealers have a fraction of what they use to have in terms of market, home theatre is king, 2 channel audio is on its last legs...I doubt most dealers would put themselves in a position to making 1 isolated sale, its simply not possible to continue business this way in the current economic climate.

IMO, it's a major mistake to go into a purchase with a dollar amount. Typical dealer question "How much do you plan on spending?". Then they sell you a speaker at that amount without considering you could have gotton acceptable sound for much less. Or maybe you need to spend more to be satisfied.
I understand people have a budget but if you go in with a dollar amount you will automatically go up to your maximum amount instead of just focusing on the sound.