Looks like you're doing pretty good so far. Not shopping at Best Buy or Circuit City, have been attracted to some good stuff. When asking for opinions from others about making choices, add that data to your database but make your final decision on what you like.
A Musical Fidelity A3.5 integrated amp would be a pretty nice source at $1600. For a bit more ($2800)the PS audio GCC100 sounds good.

I've used Vandersteen 2Ce speakers over 10 years, and the better stuff I have fed them, the better sound I have gotten. At this point, all the gear I have in front of the speakers outclasses them; I've probably reached a point where the next step is to take a bigger plunge to get that next step closer to audio nirvana.

The 2Ce does many things well, and you'll find the compromises are all ones you can live with comfortably. There have been improvements to the design over the years, and I suspect it will be difficult to get better sound without spending a lot more. I've used 50 and 100 watt amps with them, and they worked well, although the higher powered amp was effortless in its delivery of music by comparison.

You can save a LOT of money by buying "sane" cables and interconnects. Many people don't buy into the whole cable thing. I think it's safe to say in a "budget system it best to put the most money into speakers/amp and source

Try "anticables" and try "bluejeans cables" both have gotten great press for their speaker cables and interconnects.

If you ave a computer you might consider a SqueeezeBox or Transporter instead of a CD player.
I sold my high end dac and everthing is on my hard drive now.

try www.partsexpress.com or www.mcminone.com for even SANER pieces of wire. They got all the same stuff as some overly priced hihgly marketed, hyped nonsense, without much of teh hype. Pieces of wires from Stellar Labs (yeah, I'm sure there is a lab, OK, so they throw in some marketing nonsense) Pieces of wires that do what wires do. connect two electrical things together, not do anything with teh sound, since it is a piece of wire!! Also checkout some Vanalstine stuff, it'll smoke anything you find in teh store at any comparable price of any AVA stuff. High end without teh BS. And ya don't need any magic wires or connectors to make it smoke anything you will probably hear, including a McIntosh. Ya wants hybrids, all tube, or all SS MOSFETS, Frank has it. and teh stuff is sonic bliss, and super reliablile. No misrepresented issues like some exorbitant priced hyped nonsense, that can't even meet published specs. AVA exceeds specs, and claims. And it wasn't made by far off lands with unliviable wages to the slaves. Also checkout some LEGACY speakers. www.legacyaudio.com All price ranges, again no BS, just superb sound

DUP is giving you great advice, the Van Alstine is great gear at a fair price.
I dont know if BlueJeans or Anticable is more than the parts express stuff but it's pretty cheap. AntiCable speaker wire is about 10.00 a foot..........and I hear it looks cool:-)
Btw, I have XLO Sig cabling(way to expensive I am getting anti cables and selling the XLo............return to reality.........I,ll use the dough to buy more music.
And this is for Watt/Puppies with Rowland electronics.
Wish I had spent more time researching and less money on cabling.

I've heard Norhost Vallhalla etc. After a certain point I don't hear a diference and that point is the price of anticables.

Hope we save you some money and DO check out VanAlstine.

I have been running the Vandersteen Model 3A with 2W subwoofers for several years, and it is hard to imagine better sound for the money. I had the model 2 before I went to the model 3, and the added the subs because the 3's still don't go WAYYYY low, but I could have saved money by just adding the subs to the model 2's.

One thing to consider; if you get the model 2's now and plan to add one or two subs later, you can use a much lower-powered amp to start with.
The subs have 250-watt amps built in to handle 70 HZ and below (Vandersteen has you roll of your main amp so it is not loaded below 70 HZ when you use the model 2), and when your main amp does not have to put out all of that bass power, the demands on it are much less. With the model 2's which are fairly efficient anyway, 80W per channel will usually be plenty for most rooms.
That PS Audio integrated has received many good reviews, but I haven't heard it. If I was in that market I would want to check it out. I use two model 2 subs by the way, because my room is 15' by 38" and has a high ceiling, but one is enough for most rooms.
The new Vandersteen speakers have the subs and amps built into the main speaker cabinet, but the problem with that is that in some rooms, it seems to me, the optimal location for the sub is not the same place you want your main speakers. In my case, the model 3's are way out from the side and rear walls, but the subs need to be very close to the corners. The separate subs give better flexibility, depending on the room acoustics.

Welcome, Jaydough!

Add mine as another vote for how great Vandersteens can sound.

Nice choice.

Now, the tough part...choosing the rest of your rig.

I am torn.

On the one hand, I think that if the 500 dollar integrated sounded good, then that would be a nice budget friendly way to get the ball rolling.

Then, as you listen and get a feel for what it can and can't do, that will help you decide which direction to go for a more "definitive" system.

Better to outgrow a 500 dollar integrated than a 4600 dollar one.

On the other hand, maybe buying a more definitive integrated amp would save you the 500 dollar entry fee by buying your final amp at the beginning!

I applaud your leaning toward an integrated, I think they save much money and deliver some of the best electronic synergy you can find.

I'd also recommend auditioning some others before making any decisions, especially the Krell, is it the KAV400i now?

Anyway, one thing I've noticed, in general, over the years is that someone's first system is rarely their "final system," so if you can plan for some plain old human inconsistency in advance, you may get off cheaper in the long run.

Best wishes.

Keep us posted as you shop!

I would really recommend you find a Triangle dealer and hear the Celius, $2600/pr. They are so efficient you can run reasonable tube power and enjoy some great music making. If listen to rock you can add a sub if you need to. Even a Creek 5350 would work well.

Musical Fidelity would also be a safe choice.

The Jolida JD 1000 100 watt/ch EL34 based tube amp would be killer at under $2K. You would probably not need a sub with this Jolida/Triangle combo.

Underwood HiFi

Good Luck