
TLS Guy
Audioholic Jedi
I like computer playback systems also, but it does not come cheap.@TLS guy: we'll just have to agree to disagree on this one. I like computer playback systems.
To the OP, if I were setting up a new system for computer audio playback and I could go a bit over your $500 budget, I'd get a squeezebox touch which runs around $300 (sometimes you can get it for a bit less): Amazon.com: Logitech Squeezebox Touch: Electronics. I'd get the Touch rather than a CD player. The Touch sounds great through its analog outputs, it does internet radio well, and makes computer playback a breeze. Just add hardware of choice.
I also listen to Internet radio, but even the best are just about as good as analog FM form a really good tuner, bit not close to comparable to a good CD.
I think as usual part of this disagreement is speakers.
I was in Best Buy to get a radio Ethernet card today. I wasted more time than I should have in Magnolia. I left entirely depressed. All of the speaker systems on offer were awful, yes, really awful, especially the subs. As engineers we have to do a lot better than this at the affordable end of the market.
There is precious little difference in a budget and high end CD player, but in speakers the difference between speakers up to $2000 a pair and the best high end speakers is the Grand Canyon. We have to close this gap.