Apartment Dweller's Paradise - The Ideal 2 ch. system?

Parasound makes some nice equipment 

Chubaka,

Actually, this is a very good point! I mean, Parasound DOES make very nice things, but their Z series gear in particular is IDEAL for the starter 2-way system. :)

I highly recommend it. Their little ZDac V2 is the better of some $2k gear.

I'm using a 2 watt Decware SE84UFO amp with high efficiency (96bd) speakers and an Omega deep8 sub in a 1,000sq ft apartment and love it. Volume on the amp never goes past noon. Plenty of volume, density, imaging, and overall great listening. I think the key to is not get an amp that over powers the room.

Decware amps and Omega speakers are a great place to start. 

Audio Note 300B kit ($1,995) Audible Illusions modulus 3a ($1500) Sonos Cullen mod ($800) Arcam irCam ($800) NAS RAID 5, KEF LS50 ($1,500) Hsu uls 15 mk2 ($700)
$6,900 with cables and sounds fabulous even at low volume. 
The downside is 8 w/ch. It won't make hard rock rock hard. 

Oops, typo. $7,900