Should Speakers come first in a gradual upgrade?


I got info hi-fi audio about a year ago, and I have what I consider a pretty balanced relatively low cost system (high cost for me because I'm just an airman in the Air Force): Monitor Audio 5i speakers, Audio Refinement Complete Amp, and Cambridge Audio D500 CD Player. Conneting it all together are a Transparent Audio Super RCA interconnect, Transparent MusicWave speaker cable/jumpers, and stock powercords. I have a budget of $1000-$1500 (plus whatever I can sell the stuff I'm replacing) to upgrade my system. I'm very happy with its basic sound now, though I'm looking to get smoother highs, a little more detail, as much of a 3d soundstage as I can, and more solid low end. With that in mind, I'm thinking of going to a mini-monitor/sub system. I'm wanting to spend all my budget on upgrading just one component to the highest quality I can afford now, and I'll upgrade the rest when I can (it'll probably be an 8-12 month wait before I can do another upgrade). The question is, is that a smart way to go, and if so, what component should I upgrade first? I've thought about replacing the CD-player with an Arcam 92. But then I've been thinking that getting a Cambridge Audio S700 DAC (includes HDCD decoder) w/ Transparent's premium digital cable may give me a sound equal/better/close to a $1500 player at a lower cost. I'm pretty happy with the sound of the Audio Refinement amp, so I'm not planning on replacing that anytime soon, plus I think upgrading the amp will have the smallest effect on getting the sound I'm looking for, as opposed to upgrading the speakers or CD player or adding a sub-woofer (am I right here?). As for speakers, I want to replace the 5i's with a premium mimi-monitor, and one that has caught my eye is the Eggleston Works Isabel. I think it has fantastic looks, and it has the dynaudio esotar tweeter which should give me the highs/detail/sound stage I'm looking for. I'm concerned though that the Audio Refinement amp will not adequately power the Isabels (the amp is rated at a very solid 50watts). Any other monitor suggestions? It seems like the Dynaudio 1.3's keep coming up, however, I don't have a way of auditioning them, and the Isabel seems to be made to a slightly higher quality and with higher quality parts (esotar tweeter, hovland musicaps, vishay resistors, cardas rhodium posts, etc). Finally, I plan on getting a REL Strata III subwoofer, with plans to get a second one down the road. I don't want to get the subwoofer now, because I think the bass in the 5i's are fine, though lacking in weight and extension. Plus, I'd rather get the better highs/detail/soundstage now, and wait on the bass. My ultimate goal is to build a great sounding system with the afore mentioned qualities for 8-10k, and I'm hoping that whatever component I get now will be a part of that 8-10k system. So I'm left wondering what should I upgrade first? What will make the biggest difference now? And what should come next? Thanks in advance for helping me out. Oh, my music tastes are diverse...some of my favorite tunes come from Sting, Cat Stevens, Itzhak Perlman, Peter Gabriel, Beethoven, Andreas Vollenweider, Stevie Ray Vaughn, and Led Zeppelin.

Thanks,
Gil

p.s. Any other military audiophiles out there?...I haven't met any yet...it's hard to explain to your fellow soldiers why you aren't crazy for wanting a 10k stereo that doesn't even have "surround sound".
poor_airman
I really don't like the Transparent cables. I have done aq lot of comprisons and Transparent was the worst being easily bettered by Harmonics entry level. I believe the digital can be improved also, but you should at least demo some new cables like the Acoustic Zen Wow ic's for $249 and their Satori Speaker cable $599 or even the entry level HT cables. I would usually recommend other upgrades before cables but those Transparents are stinking up your system.
We (wife is an audiophile too!gloat.) have a pair of 5i's that served as surrounds in a previous theater. A couple of Saturday's ago, an audiobuddy showed up with steaks and a new Cary pre-amp. Knowing better than to start pulling apart an existing system, we grabbed the 5i's out of the spare room along with a dormant Cinepro 1K2. A Marantz (modified)CD and a handful of cables later, we lit the speakers. They were nothing short of astonishing! By the time it started getting light outside, the little speakers had Wireworld and PerfectConnection cables, Rogue Audio monoblocks, EAD transport and DAC and of course, the
Cary. We all felt that the 5i's could have still gone a step or two. They are truly amazing little speakers. Placement will make significant changes in bottom end (they don't really need a sub), they love tubes, and are very rewarding of good cabling. If you have not yet done so, it is mandatory to fill them with lead shot (sand is for playgrounds). Ours have 34 lbs. each. The change is remarkable. Next step, changing out the crappy connectors with wbt's, will let you know how that goes. Thanks for the chance to share our findings...
I started out along the same lines as you-with a modest system consisting of and NAD cd player;Jolida 502 integrated tube amp;and,Spica tc-60 speakers.When it came time for a major upgrade,i started with the source,and have never regretted it.I purchased a Meridian 508.20 cd player.It transformed my system,bringing a level of musicality out of the spica speakers that i did not know they were capable of.Yes,we're talking about a 3k source with 500.00 speakers.Poison dumped in the river upstream will poison the waters downstream.Since my purchase of the meridian,I have up-graded all my other equipment.Had i not purchased the meridian first, i do not believe that i would be getting the best out of my new system.
Both the subwoofer and DAC camps make their cases well. Here's a suggestion on how to play. Buy Ric Schultz's EVO Millenium II DAC (for about $160 you can also get his digital coax and analogue interconnects). Blows away the Perp Tech P1/P2/P3(Wright-mod) in my experience.

If adding a quality dac "does it" for you that's it. If not, return it within 30 days for a complete refund. Since music is your interest go for the Storm over the Strata without question.

Not familiar with your wire so can't comment. Most would agree that it's system dependent so my opinion wouldn't mean much anyway!

BTW, one thing I'm sure all of us can agree on is that we appreciate what you are doing for us out there - God's speed and keep your head on a swivel.
I have a pair of the 5i's in my home theatre system and have found them to be very transparent. Changes in the source and cables in this system are quite noticeable. I, like you, prefer sacrificing bass for better mid/hi performance so I wouldn't add a sub yet. Filling the 5i's with lead shot will give them more/tighter bass repsonse so I would recommend doing this at least. As others have suggested, I would upgrade the source (in the form of a CDP), then experiment with cables that suit your taste. Good luck.