Source vs. DAC vs. Preamp Importance?


Current Setup:

1. PSB Synchrony 2 Spkrs
2. Parasound Halo A21 Amp
3. Marantz AVR as a preamp
4. No Source yet (looking for a CDP)

I have 2000$ left to complete my setup. I was looking at a decent CDP w/preamp like the Audiolab 8200CDQ....but also thought maybe keep the AVR as a preamp and spend the 2000$ on a better used CDP only? The problem with the AVR is that it won't pass through a signal, it would convert A-D and then D-A before sending signal to my amp, how much would that degrade the sound from a good CDP? Is it better to get a great CDP and run it through an AVR's DAC....or get a pretty good CDP w/pretty good built in preamp?

If I had this to do over again I would have spent more evenly across all components. I am a newbie and any advice would be much appreciated!
watsonblues
The CDP and pre-amp are arguably the most important components.

Passive pre-amps in CDPs don't tend to be very good in comparison to a good pre-amp.

I suppose I'd look for a good CDP and use the Marantz for now. You can go 2 channel direct mode to the pre-outs and bypass all the digital stuff in the Marantz.
I would first get DAC with USB 24/96 capabilities to play hi-rez files from your PC and than get something cheap with digital out for red book CD playback.
The source is just as important as the speakers, but it will be ruined with most active preamps. I would recommend a transformer passive linestage, like the Music First.

The source, whether it is a CD transport or a computer must have low jitter in the master clock. This is the most important aspect in digital audio.

Steve N.
Empirical Audio