Help I have not bought equipment since mid 80's

1. Budget?
2. 2 channel or Home Theater(if so, what percent music vs movies)
3. Happy to buy used & demo to save 40-50%?
4. Where do you live...we can recommend dealers
5. Describe your sonic priorities

Spencer

Lots of good advice here but here is where to start. Bring along your favorite music (a variety to listen to) and pick out a pair of speakers that you like first. Once you hear the pair you like then you can find out from other Agon members with the same speakers what amp to mate the speakers with. You DO NOT have to spend big bucks to get great sound, just system synergy. The Krell amp is very good for the used prices they go for but not for the $4K list price. Once you have the speakers and amp matched up, then focus on a source and then a preamp. There are some who will tell you that the preamp is critical for great sound and they are right but you need to hear what a good source will do first and then see what peramp will provide the best sonics and not reduce the sonics of the source.

Hope this helps.

Thanks for all the advise. The equipment I have now has either been bought as demo, used or basically a couple months old. I would prefer not to pay retail. So far this is what it looks like:

PT5 - demo $400
2250 - demo $2600 (new $4000)
280cd - demo $1900 (new ($3500)
Energy Veritas 2.4 (used a few months)(new $3600) and a new set of Monster Z200i XLR interconnects (new in package and seal not broken) - $1800
interconnects: Vipers - demo $100 a set
CV6 - used $200

About my budget, it depends. I have a wonderful caring wife who does not care what I buy. Lets just say, I need to feel like I am getting what I am paying for. I could spend perhaps $10,000 or so on these items (used or demo).
I do not know the terminology to describe the sound I want, but I want to ease back, listen, and feel totally into the music. I am not looking for a rough ride. I do not want to feel tense while listening. I would like to enjoy the music, and at the same time not be aware that it is there. For now I would likely keep the speakers, but I am open to a different Amp, Pre, and CD, if it would give me better results.

I am looking for a 2-channel system mainly. BUT, my wife saw the plasma TV's when I took her to the local stores one day, and now she says she wants one. So, I will likely be thinking of a home theater system to add with the 2-channel in the future.

I am totally in agreement on ditching the PT5. In response to the advise on just purchasing a simple system and checking it out for a few months, that is basically what I had in mind. I bought the PT5 and 4420, and have been using my old pioneer cd player so I could add gear to it and check it out. I figured I could either put the B&K in my bedroom, the garage, or sell it when I am done with it.

I have also taken the following gear home and auditioned it.

Parasound A23 and P3
Energy Veritas 2.3
Monster HTS 5100
KAV 500
Krell HTS7.1

So how did the iPod sound?