Getting back into digital. Please help.

if I were getting back into digital at this stage I'd definitely be putting together a hard-drive based system. you'll be able to take advantage of the hi-rez stuff that's already coming out (as downloads). not only this, but if you use the right software to extract the info on CDs to your hard drive, it will actually sound better than using a CDP. the big high-end shop in town (definitive audio in seattle) did a demo a few months back which was revelatory and I think your budget is adequate to do it: HDs are cheap, the software is cheap - your big expenditure will be the hi-rez DAC (or whatever these things are called now...).

plinko: you posed the question as to whether the new USB DACs sound good. the demo I attended at definitive settled that question in my mind completely, which is why I said in my original post that I'd go the hard drive route if setting up a digital front end now (I already have a very nice CDP so I'll wait a bit before switching). I'd strongly urge you to try to audition a HD setup. I realize you said you don't have a dealer nearby, but remember: the HD is just a computer product ($500 or less) and the CD info extraction software is cheap. the only thing you'll need to buy from an audio dealer is the USB DAC. the nicest ones are pricey, but you'll get great sound from redbook as well as future-proofing (the ability to play hi-rez downloads) and you'll have the convenience of an ipod, with your entire collection accessible from a little hand-held device. I believe I heard them say you can get software that allows you to use your iphone to control HD systems. you might just call definitive and chat with them - they're very nice and professional (I have no interest involved here btw).

if I recall correctly, I listened to an Ayre and a Linn