which is your favorite inexpensive stereo system?

An iPod with Audioengine 2 or 5s is a wonderfull nearfield stereo.

For a true stereo:

Cambridge Audio 540 v2 integrated amp ($400) with a Sony Playstation 1 CD ($40) and DALI Lektor 1 speakers ($300) with Chord silver cables ($200).

Cambridge offers a great phono stage ($100) that you can link up a Rega P1 tt ($400).

Actually, upon reflection, I think there may be a real alternative to the NHT system - if you prefer planar loudspeakers. The smaller Magnepans sometimes show up on this site used for $350 - $450, depending on vintage, condition, etc. If you can get a cheap cd player and enough power from a receiver or amp on your budget, that could be another way to go. Won't have the dynamics or bandwidth of the NHT, but will have unique charms of its own.

Marty

I like an old Dynaco with the Welborne mods...put it with some Sequerra Met VI mark IIs and it is right nice!

Rega amps and Spendors mate well. Don't know if you can get it below $1000 but used shouldn't be too much more.

of couse, i'll always offer the cheap fostenx 167e bookshelf enclosures with a cheaper subwoofer. it is the only cheap system i've had (and currently had), though i did have a pair a bottom of the line magnepans, which i have come to think were not as good, and later an expensive pair of apogee minigrands, which were well much better (at 4k for the pair).

both for electric and acoustic music, i couldn't be happier with the simple rig i now have (well i could be happier but i'd have to be a lot richer ; )

many good choices, that is what is great about the bottom of high end audio