CD Players: Cambridge Audio D300SE $250
Or the Cambridge D500SE $349.
Amplifier: Cambridge Audio A300V2 $219
Interconnects: Analysis Plus Oval One $69.95
Speaker Cables Audioquest CV-4 $119.95
At a local dealer, get her a pair of B&W DM303 $300.
Alternately go to http://www.spearitsound.com/
They have new factory refurbished NAD audio receivers (not HT). The C730 is $329. Then she'll have a AM/FM tuner also. Spearit Sound is also a Cambridge Audio and B&W Speaker dealer, so you could get the rest there also. The Cambridge Amp is only $250 new, the D300SE $289. Ask for Richard Moulding or Jack Tozzi. Check their specials/demo/used page also.
Cambridge Audio has a DVD player now also.
Or do a combination of AudioAdvisor and SpearitSound.