I have been in the professional live music space for years. I think it should be said that room influences performance more than gear. You need to match the room dynamics. Most mega-buck systems sound bad because they overpower the room. I have found, as a rule, that low power amps coupled with efficient speakers will rock most homes better. There are a number of entry level choices that will really sound good. It should be noted that every Motown hit was mixed down on car speakers and Joe Strummer of the Clash recorded demos on a Fischer Price toy cassette.
Good student systems:
Turntables ($300):
Rega P1
Amps:
Trends Audio $139
Powered Speakers: (Both under $400)
Blue Sky EXO
Audioengines
Standalone speakers: ($300)
Era Design D 4
Paradigm Atoms
PSB Alpha B1
iPod:
Red Wine Audio iMod: $200
CD Player:
Sony Playstation 1 SCPH 1001 $40 used
Good student systems:
Turntables ($300):
Rega P1
Amps:
Trends Audio $139
Powered Speakers: (Both under $400)
Blue Sky EXO
Audioengines
Standalone speakers: ($300)
Era Design D 4
Paradigm Atoms
PSB Alpha B1
iPod:
Red Wine Audio iMod: $200
CD Player:
Sony Playstation 1 SCPH 1001 $40 used