Hello, I need some advice on how to build/buy a good, durable, "audiophile" computer audio setup for my iMac (24", 3.06 GHz, 4 GB RAM). Don't get me wrong, I'm not looking for the best of the best, cutting-edge, expensive gizmos, just for some gadgets that produce a decent sound! I mainly listen to lossless audio formats (Apple Lossless, AIFF, FLAC) and some 320 kbps encoded MP3s. As for the audio configuration, the iMac has: - built-in stereo speakers- internal 24-watt digital amplifier- 1x headphone/optical digital audio output (minijack)I've been using the internal speakers for a few month now, but they just don't satisfy my ears! I'm willing to spend about $1000 (speakers included in the budget)!!! 1) What do I REALLY need to get a great, "audiophile" sound out of my mac? A DAC, a Pre-AMP, an AMP,... ? And of course speakers! 2) What does a DAC do, and is there a big difference between USB, optical, or line-in DACs? Which one should I get for my purpose??? It should have a headphone output! 3) Which speakers should I get? I'm considering bookshelf speakers, more precisely the AudioEngine A5!? The reviews are great, but other recommendations are welcome!!! 4) Is the on board sound-card of the iMac even able to produce a decent sound output? A big thank you in advance for any help! In fact, I know a lot about digital audio formats, but unfortunately only very little about equipment. Thanks again!