If you knew then, what you know now...

My advice would be to wait/save and buy what you really want (really want but can honestly justify the purchase/expense of) the first time around. To buy a component with the thought that it will be upgraded (it will do for now) will mean that you will never be satisfied with that component and that you will lose money down the line when you finally do upgrade it. I just went through this thought process with power cords that I plan on updating and decided to just bite the bullet and buy the ones that I "really" want. This decision for me entailed seeking approval from my wife and auctioning a few pieces of art from our collection to finance the cables. Had I used this thought process over the past year I would now have a much better system and would not have wasted a lot of money on gear that has since been resold (at a loss) or given away as it was no longer being used. I am also very frugal and don't believe in throwing away money either. A good example of this was when I purchased an equipment rack for $150.00 which was on closeout at AA and had the bolt together frame welded into a one piece unit by my auto mechanic. I feel that it is as good or even better in some aspects (it came equiped with upturned brass spikes for all of the shelves as well as brass floor spikes) than the $600.00+ racks that I looked at locally, plus with the money that I saved I was able to order Neuance shelves for the rack. This I feel saved money, but there was no compromise as far as the sound quality goes, so I am happy. The speakers that I have always wanted to own are the long discontinued Gallo reference speakers on Barcelona stands. I like their sound as well as their artistic design and consider them to be both Hi-fi and art. Other than a speaker kit that I would like to build (for the hell of it) I doubt if I will upgrade the current Reynauds until I can both locate and afford a pair of the Gallo's. By not buying a bunch of speakers in between this should be an easy task to accomplish. If you don't own any gear at all and are just first putting together a system this is a hard road to go, but if you are upgrading an existing system then this concept can be used as each piece is upgraded. This plan will not work for people that thrive on building new systems on a continual basis, but will do fine, I think, for those that wish to complete a system to their satisfaction and then sit back and enjoy the music. I personally get a kick out of reading about what gear the other members here pick up and assemble and hope that at some point in the near future I won't feel it necessary to have to continue the process myself. If that point never comes though, then I have a problem (though it would be a cheaper one than blow:-)

Tobias: I am not disagreeing with you (the source is very important). But if that source is digital it is pretty hard (for me anyway) to go for the best I can afford at this time due to the SACD cloud that hangs over my head. I am very happy (now in retropspect) with my decision to purchase the Bel Canto DAC which will most likely make a nice companion to an SACD player at some point in the future. I was however in the beginning dissapointed with my decision due to the additional IC, power cord and isolation components needed for the seperate box. In this regard I feel that DAC's for standard playback are still a good focus at this time, unless of course in the future manufacturers decide to include better preformence (for standard playback) in the SACD models offered within my realistic price range. I have noticed a lot of pussyfooting going on as to how good the standard playback quality of even the current model $5K to $7K SACD players is and also notice that people are having the players modified in order to improve this method of playback. The Bel Canto is just my reference in that it is what I own and enjoy the sound of, but I guess that I am endorsing the purchase of any high quality DAC at this time in the event that you will add SACD to your system in the future. This is anyway how I have concentrated on the source in my situation, be it both mental and budgetary.