I was able to put this system together despite a tight budget. I got some of the equipment second hand from my dad and uncle. (also audiophilers)
The PS audio amp, Audio Research Dac as well as the cables, were given to me. I use a computer for 90% of playback. When money allows it, I want to upgrade my speakers. But I won't be doing anything major for a long time and am content with my system now.
I also listen to headphones sometimes. I mostly listen to Radioshack brand headphones that are re-branded koss 'phones.
****Update****
I have made my first big purchase and bought Monitor Audio RX6. They really reveal a whole new level of performance. Extended, detailed and space.
****Update****
My Little Dot MkII which I was using as a preamp simply didn't cut it once I upgraded my speakers. The Little Dot is designed as a headphone amplifier and does a respectable job doubling as a preamp. However, I stumbled into a Threshold SL-10 preamp and have had all the caps upgraded. The Threshold is built like a tank and is very heavy. The external power supply oversized and is a great candidate to upgrade the caps.
****Update****
After updating the Threshold and installing better / bigger caps, I decided to do the same for the PS Audio amp. Both have opened up the system to be more revealing.
Vintage Preamp from 1979. Has been restored and upgraded with better caps.
PS Audio Two-C plus
70 watt power amp from the mid 80's. One of the first good sounding solid state amps. The key to this amp is the beefed up power supply that the plus model has. I have had the amp restored and caps upgraded.
Audio Research DAC-1.20
Vintage Dac. Does not have the most recent technology and is not capable of 24 bits. But the sound is very good.
That Little Dot mk.3 looks like a sweet little piece. Imho, you should get one of those and save up for that $99 HRT Music Streamer that everyone's raving about.
I agree with Lou; I've avoided preamps for years before purchasing my Antique Sound Labs LH-01 as a demo from my dealer for $400. I must say that an inexpensive tube preamp is a great way to go - just make sure it isn't noisy - if it is just return it. The tubes are a must to counter the harshness associated with mp3 & inexpensive cdp's. Also, your power amp is designed to receive a higher voltage signal that any decent preamp provides and will greatly improve the output from a soundcard.
Check out the ASL Line One @ http://www.divertech.com/asllineone.html
My next preamp will be the Manley Shrimp... http://www.manleylabs.com/containerpages/shrimp.html
This one is pretty cool too: http://www.audioadvisor.com/prodinfo.asp?number=VISA96
If you aren't interested in tubes than check out the Parasound stuff: http://www.audioadvisor.com/prodinfo.asp?number=PAZPRE2 http://www.audioadvisor.com/prodinfo.asp?number=PAC2100
