Starting over

o Oppo DV-980H ($169)
o Onkyo A-9555 Integrated amp ($400 for warranteed B-stock at accessories4less.com)
o PS Audio Image 25 speakers ($479 available here)

You will be surprised:

The PSBs have a smooth linearity that many, many very expensive speakers can't (or won't) achieve.

The Oppo is smooth and musical and plays every imaginable audio format. If times get better, keep it and run it into a Benchmark DAC1.

The last component you will outgrow is the Onkyo. After 150 hrs of break-in its sound is reminiscent of a multi-thousand-dollar stack of boo-teek components.

Consider Shanling MC-30 all in one - tube integrated amp, radio, CD player, iPod dock. It can be had for around $700. The only problem is its power rating. Since it is only 3wpc class "A", it needs to be matched with very efficient speakers.
Omega speakers come to mind ..... but if you are interested to put in some of your own sweat into DIY high efficiency speakers project, you might be very pleased with the outcome.
If interested I will be happy to help.

Mariusz

The shanling is way too weak for anything but the most efficient speakers. Going with any of the Music Halls will get a lot more power and you can get a class A amp which will get you a lot of warmth. I've seen them used for $500-700. 50 watts will drive most speakers.

The New Bose Acoustic Wave Music System 2 !