Source vs. DAC vs. Preamp Importance?


Current Setup:

1. PSB Synchrony 2 Spkrs
2. Parasound Halo A21 Amp
3. Marantz AVR as a preamp
4. No Source yet (looking for a CDP)

I have 2000$ left to complete my setup. I was looking at a decent CDP w/preamp like the Audiolab 8200CDQ....but also thought maybe keep the AVR as a preamp and spend the 2000$ on a better used CDP only? The problem with the AVR is that it won't pass through a signal, it would convert A-D and then D-A before sending signal to my amp, how much would that degrade the sound from a good CDP? Is it better to get a great CDP and run it through an AVR's DAC....or get a pretty good CDP w/pretty good built in preamp?

If I had this to do over again I would have spent more evenly across all components. I am a newbie and any advice would be much appreciated!
watsonblues
i vote with marakanetz--get a good dac, which will give you a lot of flexibility in the future and likely be an improvement over the inboard dacon your avr. esp. in view of the rapid decline of cd as a media form, i wouldn't drop a ton on a cdp--you can get a solid used transport for a couple hundo. i'd look next at eventually upgrading your preamp--your speakers and amp are execellent.
Thanks for the input. Does anyone know of a good used CD/SACD player for under 2000$?

I have a new Dell Windows 7 computer but don't know a thing about how to download the hi-res files to a DAC. Is there somewhere I can learn what all is needed? Seems to be hard to pin it all down online.
look at some of the asynch USB DAC's that offer preamp controls (Wyred4sound DAC-2)and combine that with a Mac Mini as your digital source of ripped music or HD downloads. You should be able to do this for close to the $2K figure.
The speakers are the most important component in any system.

Find a pair that knocks you out and work backwards.
Wyred4sound will require the software installation while Antelope would not... just plug and play. MyTek is even more versatile than both Antelope and Wyred, but all of these excellent DACS will be very easy to handle and use. For me having a great headphone section is important so I'd stay for Mytek, Grace M903 or Antelope.