Here's my system. Bear in mind I'm 20, work for a Hi-Fi Retailer, and have this set up in a university Dorm room. It ****ing KICKS.
http://img8.imageshack.us/img8/9533/...rreference.jpg
http://img4.imageshack.us/img4/7254/optical.jpg
The weak point in the system is definitely the Amplifier at this point, but considering its at least 15 years old and I bought it second hand, it actually kicks a whole bunch of ass.
Speakers: £399 at time of purchase.
Cambridge interconnects: £49.95
Amplifier: £80 second hand. I don't think the shop had a clue what they had, its very good for that money...
Optical Cable: Who cares, its digital, they all sound the same.
Soundcard: £70 - Was actually a warranty replacement for an Auzentech card which was much better on analogue output, but considering I'm using the optical, I doubt theres any difference between the two now.
DAC: £199 and it ROCKS.