which is your favorite inexpensive stereo system?

I like an old Dynaco with the Welborne mods...put it with some Sequerra Met VI mark IIs and it is right nice!

Rega amps and Spendors mate well. Don't know if you can get it below $1000 but used shouldn't be too much more.

of couse, i'll always offer the cheap fostenx 167e bookshelf enclosures with a cheaper subwoofer. it is the only cheap system i've had (and currently had), though i did have a pair a bottom of the line magnepans, which i have come to think were not as good, and later an expensive pair of apogee minigrands, which were well much better (at 4k for the pair).

both for electric and acoustic music, i couldn't be happier with the simple rig i now have (well i could be happier but i'd have to be a lot richer ; )

many good choices, that is what is great about the bottom of high end audio

There are many ways to skin the cat.
Here is another alternative:
(I am familiar with the modified drivers and amp but not the enclousures - but I trust the source)

Flatpak - ready to be glued-up kit. Use this source for the Fostex FE126e and this little integrated tube amp with USB DAC and single AUX in.

If you buy the amp used ($350-$450), you might be able to build the speakers with above mentioned drivers for the remaining chunk of your budget.
Since the amp has the USB DAC, your computer can be used as the source.
If that's how it will be configured, get the newer (2009) version with improved USB DAC. You can also try this alternative for cool $398 delivered - ( FYI, I have no experience with this amp)

I hope you enjoy these alternatives

Mariusz