With some wonderful exceptions, speakers tend to be the most expensive component to acquire. So starting at this end of the chain makes the most economic sense to me. Ivor is right about GIGO, however even a great source can sound crappy through inexpensive or badly matched speakers. Now that digital/analog front ends are getting more sophisticated (read: expensive) it might prove to be a wash. But, IMO, I'd start with speakers.
Help: Order of importance: Pre, Amp, DAC, speakers
I am a bit confused now. I bought a pair of 1.3SE's with an Sim Audio i7 and a benchmark DAC1. I am very impressed with the results. A buddy of mine came over with a pair of generation old Tannoy reveals which performed remarkably with the setup, very close to the 1.3SE. Now I am a bit stupified why I should spend so much money on a speaker. Am I just dreaming? Does the Pre, amp and DAC really shine above a speaker purchase? Thanks for the feedback!