Complete newbie needing guidance/purchase advice

Thanks, Tobias. That makes total sense. I will continue to check out the integrated amp suggestions made here thus far.

Speakers are the most important choice to make. With that said, please keep in mind that speakers might perform quite differently in different rooms and/or with different amplification. I would suggest choosing speakers that will perform appropriately in your given room, and with the amplification that appropriately suits that individual speaker in your room, not what you have on hand. Building a system with your current and potential budget, around your current receiver is bound to cause a needlessly frustrating bottle neck.
There has been a lot of conflicting advice given, welcome to the hobby!. None of it is really wrong. IMHO, your correct in deciding upon speakers first. As I've already suggested, I think that one should think in terms of speakers with amplification. Separates will offer you more choices and allow you to make changes easier as you get a better feel for what direction you might want to pursue in the future. If you choose quality used products, you can try them in your home, and keep them if you like them or sell them if you don't, for pretty much what you paid for them, with little penalty other than perhaps shipping costs. As such, while I respect the opposing position, I see little reason to hold off buying key components and upgrading secondary components as your budget allows. Why be without music and the learning experience in the mean time? The key is to buy gear that has stood the test of time and retains it's value. Needless to say, and though there might be some novelty exceptions, poor sounding gear doesn't usually make the list. That doesn't mean that you shouldn't take advantage of opportunities to listen to other systems. Just try to keep them in context of systems that will be at there best within your budget (now and into the realistic short term future), and your room.

Why be without?
Because you will be without your money spent FOREVER.

Hi RM9,

I'm probably more of a newbie than you. I have a very low-end system:

1) Pre-amp: Anthem AVM2 (although I've been using a Nakamichi AV8 as the pre-amp / processor and I'm actually quite pleased with it. Surprisingly, despite the MSRP price difference, to my ears given my set up, I think the Nak results in a better experience).
2) Amp: Adcom GFA-5400
3) Source: Sony CDP-X111ES CD player
4) Speakers: KEF C75; KEF Q10 (I'm using the latter more now; mid-high frequencies sound clearer given my equipment and room).

I purchased the Nak, Sony and C75 new (15-20 years ago?). Everything else was purchased used (recently, as my love for music became re-invigorated sans a budget to match). Here is my experience consistent with comments above:

Lesson #1: you can make significant improvements without spending a dime.
The folks here gave me excellent advice. Just by changing my room around a bit helped tremendously -- very noticeable changes in the listening experience. It was not intuitive for me.

Lesson #2: More expensive does not mean better experience.
The Anthem MSRP is about 4x my Nak and is manufactured more recently. Still, given my components and my room, it doesn't make my listening experience better. In fact, it's lateral at best and I think I actually prefer using the Nak as the pre-amp more than the Anthem.

Lesson #3: Music preference, room, etc should influence speaker choice.
I was using my Kef C75 -- larger with more drivers, larger drivers, higher power rating, etc, etc. Should be better than the Q10's, right? Again, given my music preference (jazz and vocals fit for an old timer like me) and my room, the Q10's provide a much better experience. I won't pretend to know what imaging, sound stage, and other esoteric terms mean. But the instruments and vocals are clearer. And if I just listen, my stereo and speakers just disappear. If I walked someone in blindfolded, I doubt they could tell where the speakers where (when sitting in the listening position). Vocals seems to come from a non-existent center channel - more than once, I've gotten up to confirm that the Pro Logic and the Center Channel are off. The C75's sound fine in a larger room, but the Q10's are more enjoyable in my 'music room.'

All told: $400 for the Nak (bought new 15+ years ago), $125 for the GFA-5400, Q10's, cheapo CD player (using the Nak DAC's) -- I'm probably under $500 for the system bought used today.

Is it perfect? No. I'm sure I can get a much better sounding system through experimentation and cost. But as long as you try to avoid the upgrade bug, I agree with others that you can get an enjoyable listening experience without spending a lot. More than budget, I think it's important to establish what is a good enough listening experience. These days, I can't afford to chase diminishing returns. I justify every $100 I spend on improvements.

Lots more great advice. I wouldn't worry too much about making bad decisions. I think it's part of the learning experience. If I hadn't gone through the process, I would definitely have a very different system than I do now. Besides, Agon gives you the means to sell your gear if you don't like it. :-)

Unsound gave some good options there. I would also mention that Monarchy Audio has there class a mono-blocks (SM70 Pro) on sale for $588 each. True balanced input monos for $1200 a pair is a pretty amazing deal. Pair that with a preamp and speakers, and you will have one fantastic system. I'm thinking about upgrading to them for my winter system.

One last bit of advice. Pick up the book 'Get Better Sound'. It has some great advice on system setup and room acoustics...which is HUGE in system quality. Anyways, hope this helps!

Mot