After 35 years in this hobby the part that will make or break ANY system is room acoustics. Treatments are cheap compared to how much they help the sound. No ifs ands or buts about it.
You can have a 50k system in a room with many windows, hardwood floors with little covering etc. Give me 10k and I'll put in the less inexpensive system only part of my budget is room treatment, commercial or diy, and you'll be amazed how much money you can waste until you can get this done.
There are no amps, preamps, dacs or power line issues that will affect your sound any where near what your room acoustics do. If you have over a grand in your system you need room treatment.
After attending RMAF 2007, a few things have become very clear to me. You needn't spend a ton of money to have a very good system. You more often that not, have to spend a little more to get a great system.
To me,

it simply breaks down to this:
Number 1: Speakers.
You need to find a pair (or speaker system)that meet all
your criteria and requirements.
Number 2: Good electronics.
Ones that properly drive whatever speaker system you may want. Ones that don't pass
along nasty attributes downstream to the speakers.
This includes whatever transport, pre, and amplifier combinations you may require.
Number 3: A properly treated room.
This
should be "Number 1". As a good room is paramount to being able to discern the subtle
characteristics that separate good from bad, and good from great,
but seeing as how very few people start with
no electronics, and
limited knowledge and awareness of importance of room acoustics when they first foray into high end
audio, I put it 3rd.
Number 4: Combine all the above ingredients, and you're rockin' !

Cheers
