advice needed on 1st real stereo system

Again, buy used (or better, "recently discontinued")...plenty of upgraders are dyin' to unload their stuff on you, and this approach really works. Most of my gear, be it pro audio, guitar playing items, or hifi things in great condition have been relatively easy to find if you look around some. A couple of examples: A friend had a pair of Silverline Preludes bought new for $1200 or so, combined with a new small REL sub costing maybe $500. I thought that combo sounded sweet (and my speakers had "issues") so within a couple of weeks found the Silverlines for $400, and an older REL for $200. Just bought a new but discontinued Taylor guitar for $1000 less than the model that's now replacing it. Do this, and you will be happy.

Thanks- Has anyone looked at the naim unitiqute? Also seems to be a great system for digital. However, I am concerned about the low wattage (30 per channel).

One more time, choose your speakers, then your amp!

Forgot to say I'm going w the totem rainmakers

The Naim probably won't be able to drive the rainmakers to satisfying levels. Rather than getting an "all in one" dac and integrated lifestyle combo, I would recommend purchasing the dac separately. This will open up many more options for integrated amps at your price point which are made with fewer compromises to the amplification section. Digital technology is also evolving much faster than amplifier technology which means you can upgrade the dac in the future without throwing the baby out with the bathwater (I know, it's a terrible cliche but it seemed to fit here).