Source vs. DAC vs. Preamp Importance?


Current Setup:

1. PSB Synchrony 2 Spkrs
2. Parasound Halo A21 Amp
3. Marantz AVR as a preamp
4. No Source yet (looking for a CDP)

I have 2000$ left to complete my setup. I was looking at a decent CDP w/preamp like the Audiolab 8200CDQ....but also thought maybe keep the AVR as a preamp and spend the 2000$ on a better used CDP only? The problem with the AVR is that it won't pass through a signal, it would convert A-D and then D-A before sending signal to my amp, how much would that degrade the sound from a good CDP? Is it better to get a great CDP and run it through an AVR's DAC....or get a pretty good CDP w/pretty good built in preamp?

If I had this to do over again I would have spent more evenly across all components. I am a newbie and any advice would be much appreciated!
watsonblues
The source is just as important as the speakers, but it will be ruined with most active preamps. I would recommend a transformer passive linestage, like the Music First.

The source, whether it is a CD transport or a computer must have low jitter in the master clock. This is the most important aspect in digital audio.

Steve N.
Empirical Audio
i vote with marakanetz--get a good dac, which will give you a lot of flexibility in the future and likely be an improvement over the inboard dacon your avr. esp. in view of the rapid decline of cd as a media form, i wouldn't drop a ton on a cdp--you can get a solid used transport for a couple hundo. i'd look next at eventually upgrading your preamp--your speakers and amp are execellent.
Thanks for the input. Does anyone know of a good used CD/SACD player for under 2000$?

I have a new Dell Windows 7 computer but don't know a thing about how to download the hi-res files to a DAC. Is there somewhere I can learn what all is needed? Seems to be hard to pin it all down online.
look at some of the asynch USB DAC's that offer preamp controls (Wyred4sound DAC-2)and combine that with a Mac Mini as your digital source of ripped music or HD downloads. You should be able to do this for close to the $2K figure.
The speakers are the most important component in any system.

Find a pair that knocks you out and work backwards.