Where do you start? Is there any hope?

my first system might be a good starting point for you...i had an old NAD 7225PE receiver (look for a 7240PE or more powerful integrated if you can find one)...I also had Vandersteen 1b speakers that I consider pretty damn good for the price in my opinion...(they are heavy though so factor in shipping)...then i just ran a vintage 1993 dvd player through it and voila...for me at least...I...like yourself...want the best 2 channel for my money so you'll see that 12 years later...i still have a 2 channel HT...and actually...the one on my system page is being given to a friend when i move (in exchange for some painting help...lol) and when i upgrade everything...it will still be a 2 channel Home theater...but will probably be in the 10-15k range...yikes...maybe you should just buy the ipod and headphones and run while you still can.

good luck

just my 2c

Ellery

Is it possible to go with a preamp/amp for so little cash?
I would like to stay away from a reciever. Are there any ecconomical CD/DVD player or transports out there?

With such a tight budget how should I break down the budget.

There is always hope. I have a friend who has assembled some really great sounding systems for under $50 from yard/estate sale components. It's not easy, he gets there before anyone, and there are some risks involved, but it can be a avenue, and probably the cheapest way to go. Another strong aspect is if your newspaper lists stereo equipment, many people spend up to $1500 for a full system, and need to move, or something and you can easily get a system for under $500. A lot of it is going to depend on what you want to do, you can't expect perfection on a $500 budget. But all the main focus should not change, and that is to make you happy with it. It would even possible to assemble a real decent system of speakers, amp/receiver, and a DVD player from ads here on Audiogon. Shipping may add some costs, but the savings on real decent entry products does exist here. Try negotiating a little maybe. You're not going to be getting real fancy in the cabling, but again there are lower priced options available. See if anyone you know has any equipment they may be selling sometime. Listen to some things if you can, find out what you don't like.

separates?...highly highly unlikely...i would break 500 down into 250 for speakers (used) 150 for an integrated amp (also used) and 99 bucks for any new name brand dvd player with a bit of a warranty. with the last dollar...buy a lottery ticket because you'll need at least 30 bucks more for all the cables...and that is on the CHEAP....and hey...you might strike it big with the lottery and get those seperates...start shopping the classifieds here.