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depends on how much money you want to spend, i bought some Hardon Kardon Soundsticks 2 they are awesome - and look funky as hell too :cool:
 
I went a step further: Audioengine A2 active speakers and Nuforce uDAC-2. I guess I spend around 350-400 bucks for that setup but I'm very happy: no more soundsystems that sound like plastic PC soundsystems.

My recommendation is to get active speakers (Audioengine A2, M-Audio AV40 if you have the space) and maybe a DAC.
 
I added a BassJump subwoofer from Twelve South and it added a nice low-end balance to the speakers and blends right in with the my external HDD.
 
Does anyone have a suggestion for the best audio setup for the iMac, Thanks

I recently bought Audica MPS-1 after making weeks and weeks of research and countless visits to audio stores in the city. Finally I chose Audica. I listen to almost all types of music but usually easy listening, pop n jazz..and I am happy with it, a bit pricy but worth and look great next to my new i-Mac and all my friends are impressed on the sound quality, it's built and yes....perhaps you may consider it.
 
Thanks to all the ideas. i think i'm going to try the audioengine and nuforce setup.

Nice choice. ;) I've got a couple of tips for you, though (having that setup). Be sure to get stands for the Audioengine speakers as they really need one (they sound a bit boomy without them). Audioengine does sell stands specifically designed for the A2s - I use those.

Audioengine recommends you connect A2s to a DAC with a 3.5mm stereo jack to 2 phonos cable (with the end with the one plug going to the A2s and the end with the two plugs going to the DAC). A2s are shipped with different cables but I'm not sure if they had that specific cable with them. It might be a good idea to buy a new cable anyway as the cables (both speaker cables and interconnects) that come with these type of speakers are very cheap.

I also bought a new USB cable from Belkin to the uDAC as they recommend in buying a better-shielded cable. I'm told there is an audible difference between the USB-cable (again, cheap) that comes with the uDAC and, say, a Belkin gold-coated USB-cable.

I know this sounds a lot, buying cables and stands, but fortunately you can get these pretty cheap from ebay or wherever. Overall this set is a bargain to me -- you can compare the prices to other premium DACs and active speakers and see that actually, even with the extra cables and stands, you might end up paying a lot more when going with another setup.
 
Audioengine recommends you connect A2s to a DAC with a 3.5mm stereo jack to 2 phonos cable (with the end with the one plug going to the A2s and the end with the two plugs going to the DAC). A2s are shipped with different cables but I'm not sure if they had that specific cable with them. It might be a good idea to buy a new cable anyway as the cables (both speaker cables and interconnects) that come with these type of speakers are very cheap.

They recommended to me using RCA on the speakers to RCA on the DAC. I guess it must not make much of a difference.
 
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