When detail, imaging and soundstage are the prime consideration, Dynaudio is the best place to go that I've heard. If you want to pinpoint the location of a single instrument on stage or have it sound like the whole room is a stage laid out in front of you when you close your eyes, these are just amazing. The Audience series is certainly within the budget, maybe the Focus series if the dealer will deal.
I would back this up with an Emotiva RSP-1 and a Behringer A500 amplifier. I think $700 is too much to pay for a CD player. I would probably choose an Oppo DVD player as a source, or some other similar DVD player with good DAC's.
Up to $2,000 or more of the budget can be spent of speakers. Even the RSP-1 is a bit of a luxury.