Not looking to use a computer for my music source because its old and crappy.
Any suggestions would be helpful as t his is my first rig. I haven't bought anything yet.
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Be careful dropping that much on a first rig.
If you do end up going with it an iPod with a nice digital transport just remember that you won't be able to play 24/96 or anythig higher due to the iPod's limited support.
I'd still suggest not jumping in head first around here though.
I actually have a Marantz SA8004 in the mail on its way to me now. It's a CD player that pretty much does everything. It's cleared by Apple and can act as a transport for an iPod. It also has a DAC that accepts inputs (USB, Coax, and Optical)...and it plays SACDs.
I can't recommend it yet as I haven't got mine but I bought it because it's well liked around here. Definitely a unit to consider building a system around as you can slowly upgrade from it as your system improves.