Moving to separates

Thanks so much for your responses thus far. You folks have given me some good points to study.

As for budget, since this is my first set of kit, I was thinking along the lines of $1200-1600, but wasn't really sure what was reasonable

Re: speakers, I don't really know yet. Gallo's Ref IIIs and Mag 1.6s sound great on paper, but I live in an area where Def Tech is considered super exotic, with Boston Acoustics and Polk considered very high line. Unfortunately, not too many good places to really try anything out.

Also, I've never bought anything used in my life...Have your experiences with gear been satisfactory? I find it a little difficult to trust someone who I don't know in dealings that might ramp to a fairly significant expenditure--especially this first time! ;)

Thanks again for further recomendations...and understanding.

All: thanks for your comments, esp. Dhoperos. You folks gave me a great many components and combinations about which to read this past weekend.

What do you think of Channel Islands Audio? None of you mentioned it, but it seems to have a following...

Also, a "problem" I am having is realizing that much of what I'm looking at - I guess, able to afford - does not handle digital connections. I have always used digital connections with my remaining gear (computer network streams, sound bridges, DVD changer, XM tuner). I suppose I could sell that gear as I sold the other pieces, or use their analog outputs, but am concerned that I won't be able to afford means to watch a DVD (does anyone make a "reference" 100+ disc changer?) as I did recently. Plus, admittedly as someone in the physics field - though granted, without "true analog experience", this seems like a step backward to me...

Some of you recommended Adcom gear: looks great, but the cheapest item that handles digital sources seems to be quite costly - and certainly so for Rotel, Parasound, Moon, etc. Perhaps I need to wait for more sale items on AudiogoN for more options.

I found and auditioned a pair of Gallo Ref IIIs. The place did not have the sub amp (said that it wasn't yet available), but the speakers sounded nice. Out of my range, but they were amazing...The seller said he could work out a deal for me on the Arcam AVR300, as well, if I were interested. Also seemed like a step in the wrong direction, as it was an integrated amp, and not separates, for quite a bit of money...I don't need a tuner, though, to the person above who asked.

Thanks again for your help!

Me, again!

Does anyone have any opinions on Channel Islands Audio vs. any of the others mentioned herein?

Thanks!