The views of onhwy61, joe_b, and sgmlaw indeed reflect the wisdom derived from long experience in this hobby. One CAN put together a very enjoyable, "musical" audio system these days for only a few thousand dollars. In fact, it's easier than ever before, because of the large number of small-scale yet high-quality manufacturers, and the ability to learn about them via the internet and numerous audiophile publications. One suggestion I have is to search for any local "out-of-the-home" (but authorized) dealers, i.e., individuals who often offer very good price-to-performance on audio gear, which they have personally selected to compete with big retail stores selling overpriced Krell, Levinson, etc. It's generally a more pleasant experience, and you can often borrow some equipment to try in your home.
Are you Guys Rich or What!?
I have an old system, nothing special, Adcom, Vandersteens etc and I recently set foot for the first time in a "high end" shop, hoping to get to the next level of audio nirvana. When I saw some of the prices for monoblock amplifiers, cables, the latest speakers etc, I practically fell off my chair when I realized that I could blow $50-100K pretty easily on this stuff. I am not rich. Do you big budget system guys all work on Wall Street or something or do you eat macaroni and cheese most nights to put a few bucks away for CDs and your next upgrade?