Transport for 250 GB of Apple Lossless files that I control over Wi-Fi from my Powerbook G4. NEEDS AN EXTERNAL DAC! Currently connected via optical cable into Denon 3803.
You could pic up an external dac from Scott Nixon Audio for around $200. At this point I think that that would give you the biggest improvement. Maybe replace the speakers with monitors from either paradigm or tyler acoustics (I think they just came out with a cheaper line of speakers call the "freedom line", which are supposedly a great deal) I those two changes will make an incredible difference. If you are still not satisfied after that, I would consider an amp( i can recomend some if you want)
System edited: Please provide suggestions! I am looking for some upgrades -- not sure what would give me the most bang for the buck. I originally purchased this system for home theater but now regret not having thought about hi-fi uses. I definitely need an external DAC for the Airport Express -- the Denon 3803 is not really cutting it. Plus, I'm not thrilled with the Q1s and they don't integrate very well with the Velodyne sub. I listen to a lot of jazz and rock music -- some techno and world music as well.