Sony 2000es digital reciever : $500
this would be the DAC/PREAMP combo...which you could also run as the entire system and still get unbelieveable sound...limited to a *very over rated* 120wpc. Probably more like 75wpc in real life sound (as opposed to the printed spec).
Monarchy Audio DIP 48/96 upsampler $250
this digital processor goes in between the transport/source and the sony. upsamples all incoming digital to 24/96 or 24/48 depending on how you set it up. Jitter reduction and voltage booster.
no source is included here. You could use the digi out from a PC or any DVD/CD player.
W/the monarchy box you could run a PC as a source in another room. the voltage boost will drive very long cables w/o signal degridation. Though I dont know how long, or how much of a difference. This is their claim.
ok, so $750.
find this stuff used, and i'm sure you could put it together for $500.
Now to expand...
toss in another grand for a used amp. maybe a digital amp like the PSA HCA-2, or Bel Canto Evo 200.1.
add speakers of your choice .....
viola!
or, stick w/the above and use the Sony as your amp. Add a pair of really nice monitors (in the $500 range for used...like the Von Schweikert VR1)...and you have a sytem for just around $1250 (mostly new)...that would image like nothing else anywhere near that price point. Soundstage would be as wide as yo' mama's ass...and would just dazzle you.
VERY high-end sound for short money.
makes all your 16bit material sound better than you've ever heard it, and would have the magic of taking your 24bit masters and converting them to DSD upon playback for even better sound than raw PCM.