want to build a 2 channel system where do i start

I would say that you could spend about half that amount and still get something that sounds fantastic - then you have alot more money left over for records, CD's, and live concert tickets.

I would spend most of my money on the speakers. Without good speakers everything else is a dead end.

thanks everyone great ideas,mike

You can build a world class system for much less.

I would look at:

ATC speakers (they come in active or passive configurations)
I would recommend their active series--you get a class A amp that is perfectly balanced)

Can now connect to a balanced CD player

Done.

If you wish to go analogue, add a pre-amp, phono stage and a simple turntable. EAR, Bryston and Rega make excellent products here.

There is a substantial 'source first' crowd.
But I'd spend money on concert tickets even before that.
Where do you live? Can you get to some LIVE stuff?
Do this before auditioning anything.
Than, the key will be finding a dealer to work with and getting the room straightened out.