Hi,
I'm looking for ways to upgrade my "audio system". It's nothing fancy, and I may offend some of you with what I am doing to the music. However pardon me as I am looking to improve on that.

I buy used CDs, import them into iTunes (at 160k AAC) on a LaCie 160 GB hard drive, download them to my iPod, play them to floorstanding Wharfedale Sapphire SP 88 speakers through a Pioneer VSX-D409 receiver. No fancy cables, no isolation.
Using the law of diminishing return how would you recommend I progressively modify my system? Or how would you rate each of these component compared to each other (example: AAC 160k import = 0, VSX-D409 = 1, lack of isolation = 2, iPod = 3, speakers = 4; 0 being worst).

Because of the size of my iTunes library (just under 40 GB) if I upgrade to lossless format I would need about 5 times as much hard drive space. At 200 GB it also means that I would not be able to use the iPod as my main music storage. I therefor need to upgrade to wireless music distribution or connect the computer direct to the amplifier, or maybe there is another way.

I was thinking of this, but my knowledge is limited, please enligthen me. 1, 2 & 3 should take care of the lossless requirement.

1-Upgrade hard drive size and re-import CDs using lossless format. Suggestion: LaCie 2 x 250 GB for backup purpose. Cost: about 500$.
2-Used Apple PowerMac G4 533Mhz 1Gb RAM + display: 350$.
3-Apple Airport Express: 100$.
4-Next I would replace the receiver with Outlaw's RR2150 stereo receiver. Cost: 650$
5-Next I'd replace my floorstanding speaker. The thing here is that my living room is pretty wide open. I was thinking of using 2 bookshelf speakers on stands and a subwoofer. Anybody knows of a good combination with the Outlaw?

Here that's a lot asking in a post ... I'm hopeful ...
Thanks in advance.
Philippe