Best system under 5K - that is a challenge

First off, you didn't mention weather your doing 5.1 or just 2 channel. Second, you didn't say whether your mostly movies(if applicable) or music, or vice versa. Also, and at least as important, DESCRIBE THE ROOM IT'S GOING IN, AND ANY LIMITTATIONS TO THE SET-UP(i.e,where the speakers must go, or chairs, etc, if applicable)!!! This last one is the most overlooked, and most poorly planned and executed emlement(s) of a great sounding/performing system!(as room/set-up is easily over 50% off the overall sound).
Also, if music is the key here, do you listen to mostly hard rock, occasional classical, altrnative, etc,what?!
If you can be more specific, they may be some hope...let us know..Audioalexander

You also should specify whether you want CD only, analogue only or both. Also do we need to include a tuner, tape-deck, etc.

I am a grand over budget already, but I choose the ARC CD3 with a Grado headphone amp and RS-1 phones. You can't beat having a great source, and the Grado set up will let you hear it. I could have gone for speakers if ARC still made the CD2($3500)VS. the CD3($5000).With the CD2,and Sound Dynamics RTS3's($200 from Audio Advisor),I still would have $1300 left for an amp and wire.I would look into some roughly $1000 tube integrated amps like the Jolida or the Antique Sound Labs. My point is if your source sounds bad, you can't dig your self out. Think about $3500 speakers run by $1500, worth of electronics. That could be real nasty!