First things first tuk123, welcome to head-fi.org.

My price range is below $2000...
What are your guy thoughts and suggestions? i want top quality sound!
I bought used on the Buy/Sell forum to keep the costs down.
I rip using the highest bit-rate setting of 1.41Mbps, WAV and use a paid for downloaded copy of dBpoweramp (instead of their trial version) as my ripping software. Just finished re-ripping the whole library a few minuets ago.
I use a HD650 w/custom headphone cables attached to a Burson HA-160, fed by a Xonar STX for a transport.
A used Stello DA100 Signature DAC will be delivered in the next couple of days and the DAC will be fed by the S/PDIF output from the STX.
My opinion, the best sound comes from high quality, uncompressed, highest bit-rate rips, ripped WAV, fed to balanced headphones (this point I've not experienced but I've read) using decent custom headphone cables. I'll be using single ended as the HA-160 is single ended fed with RCA inputs but the DAC has balanced outputs to maintain up-gradability.
Cost wise? Let's see. STX + replacement of Power Supply Unit with a modular PSU, $400.00. Custom headphone cable $380.00. Used DAC/Amp combined, ~$1,100.00. Ripper program $38.00. Total $1,918.00, for killer sound.
YMMV, so surf around, read and see what tickles your fancy.

Edited by beeman458 - 9/27/10 at 9:55pm