Upgrading Entire System...please help


This is my first time posting, so please bear with me through my the questions. I currently have a pretty modest system. NAD C320BEE Int Amp, the associated CD Player (C520BEE I think) and an old pair of Spica TC-50's. While this system sounds alright I find myself wanting more. I recently listened to a relative’s stereo and was blown away. Granted, his system must have cost over 100k, but it gave me a taste of what is possible. The speakers literally "disappeared" and the performance was right in front of me. I was able to pin point each instrument in the sound stage and hear the most minuscule detail. It felt as if it was truly a live performance in the listening room. It was remarkable!

I have decided I that I want to upgrade, I do realize that I probably can’t even come close to the system I heard, but hopefully an upgrade will provide me with a better listening experience than what I have now. My total budget is about 5-6k. My question is this...as someone without much experience; at what price point will I start to notice significant differences in my system? Will a new $6,000 system sound audibly different to what I have now?

Second, in terms of budgeting, I want to keep things simple. A CD player, Integrated Amp (I figure in my price range this is the way to go) and speakers. I do not need a phono inputs, balanced inputs, etc. Also I would prefer solid state components. I figure a good budget would be about 1k for CD Player, 1.5 - 2k for Amplification and 2-3K for speakers.

After reading many reviews and doing research, while gaining a lot of insight, it has also made me more confused as there are seemingly infinite brand/combination possibilities in this price range. I realize it would be best to actually go to stores and listen, but how do you compare so many possibilities when certain dealers only carry certain brands?

Please give me some advice on a good place to start. It seems as though the best CD player to be had for less than 1k is the Rega Apollo. So let’s forget that for now. The amplification options are endless. I’ve complied a short list of models that interest me within my price range...

Naim Nait 5i
SimAudio i-3
YBA Design YA201
Portal Audio Panache
Arcam Diva A90
Cambridge Audio 840A

Then comes the daunting task of choosing speakers, as there seems to be even more possibilities within the 2-3k range! Also, how do I go about “matching” amplification to speakers? Maybe someone can guide me from here. Sorry for the long post, thank you for reading and I look forward to your responses!
gusterdmb
I want to add an addendum to the above. To get an idea of class D amps, add the Nuforce Ia-7(with V-2 boards) to the audition list. Naim should be used with their own power cords and interconnects, I believe. Separate power cords from signal cords. You can try lifting signal cords(and maybe power cords)up from the floor(I used styrofoam cups from the Dollar Tree-not the best, but cheap to try.). The reason I mention these cheap tweeks is two-fold. One, many can be done now, and prevent you from spending money quickly and allowing more money for amps, etc. Two, you will need to do these kind of things anyhow to get closer to how your friend's system sounds.
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What was your relatives stereo? If that sound impressed you so much maybe we can come up with a cheaper, but similar sounding, system.
Second the NHT Xd system. Actually had downgraded a great system and no regrets. We're talking from 20K in spending. Okay, here's some things to consider: it's all digital. Xd provides you the amp, subwoofer, two sats and all the speaker cable.

Save a bundle and move your CD collection to a hard drive and connect however best you can. My connection is via an Intel Mac Mini with Sonicwave tosslink glass cable to a Lavry DA-10 to my PS Audio GCP-200 preamp, but I digress.

Shoot, you can use Itunes to control the volume and go without any preamp if you want.

I would consider clean power via PS Audio P300 or better when you can. Used PS Audio P300s can be had for less than $600 and the whole system can be plugged into it. Just upgraded to their Premier Power Plant and that's a whole new level of performance.

Good luck.