I went through this process about 2 years ago and will offer what I found, its a bit long but it represents what I have learned over the years in search of an optimum listenting experince.
1) You must audition speakers for yourself in the store, or preferably in your home.
Don't let anyone tell you what is "best", the hardware industry is filled with hype, and much of the "elite magazines" seem to be in support of their biggest advetisers. Look at what hi-fi, they have warm gushy reviews of all of B&W line's with only very subjective descriptions. (despite this I bought a pair of DM 603S3)
2) If you are looking for reviews by regular owners
audioreview.comcom has the most
3)I loved the DM 603S3, they do need a break in period. They sounded excelent to me in the store and after they broke in at home. At first the bass was overwhelming and boomy, but that went away. In the store I could never quite get subs to have a perfectly smooth transition with a bookshelf, I am sure there are people who have gotten this fine line, but I didn't.
4)Audiotion with good and bad mastered CD's . You should know how good the speakers should make good music sound, and how bad poorly mastered CD's sound. I found that many of my CD are not that well mastered. Some of the better mastered CD's I have come across are any Pink floyd album (The Wall, Dark side of the moon), The remastered Led Zepplin, MTV unpluged albums (Nirvana, 10,000 Maniacs) Dave Mathew's band, especialy his live stuff. House/dance while usualy not the best mastered does sound awsome on a good system and gives you a good idea of how well a the speakers can fill the room. Rap has lots of bass, but is often poorly mastered and the bass is not tight. I find live albums are the best for evaluating imaging, and depth of field. I get my kicks from closing my eyes and pretending I am in the front row and can hear where all of the instruments are on stage(and tunning out my wife laughing at me).
Listen to the speakers at the same volume, wich is not necessarily the same level on the volume control of the same amp!!! and at the volume you plan to routinly listen to them in your house. It has been well demonstrated we thing louder is better. And I have found that my speakers need a little more volume then my wife likes to fully "immerse" me in my music
5) Listent to the 604. I never had real speakers before and thought that 603's had all the bass I could ever want or need but, now that I am used to them I don't find myself needing more, but I there are times I would appreciated it. With the 604 you would have verry little need for sub envy. These speakers (603 or 4) should last you a long time and can handle some serious hardware. That being said, my 603 do have quite an impact with action movies, more then my wife or neigbors appreciates.
6) Spend your money on speakers now, and then get other good equipment as money allows, you will spend less and be happier in the long run if get good equipment the first time.
7)Your only as good as your weekest link. My chain is EAC - Lame (settings ranging from r3mix to standardand Insane) -- etherenet to Audiotron -- optical -- Yamaha HTR 5280 - B&W DM603S3, LCR 60, DM 600. With two channel audio I cannot tell the difference between a CD and compressed when I informaly, unblinded, A/B with at least preset standard. Any time I think one of my MP3's dosent sound right I A/B it with the original CD, the problem has always been with the original cd. But I have not done extensive tests, nor despite the ability to instantly pick out 128bps on any system, have I trained my ears to pick out the finer MP3 flaws. For me, untill I switch to lossles (wich is comming when a Digital audio reciever with optical out supports it well), I don't want to spoil my listening pleasure if they do exist. BTW, I doubt the extent they exist would be significant if I have not picked them up by now, and some pretty educated/golden ears/anal people on this board have been pretty satisfied with DM preset standard from a qulaity point.
8)Digital audio reciever with optical out (Audiotron after all these years is still one of the only)- I can not say too many nice things about this. This was the missing link and my motivation to buy a good stereo. Long distances between a computer and a stereo need to be travesred with digital not analog, even optical audio cabe suffers to some extent over long distances. Etherenet or Wifi is best for this. Most DAR have crappy D/A convertes, even the audiotron, an optical output is a must.
9) Positioning you speakers is very important, there will always be a sweet spot. Position this for you, no one else cares nearly as much about the sound quality as you do, most of my friends think I am obsesed/nuts, but are jelous of the convience factor. (Maybe I am? when looking for the apartment I am now renting I game my wife specific instructions of living room shape and minimum dimentions.)
To be able to sit on my nice couch in the living room and have 500 albums at my fingertips, with amazing clarity is the end point of my obsessions with speakers and encoding. All of this has been a means to and end. But the quest for perfection continues... better amp, lossles, SACD...
I hope someone finds some of this helpfull, I would have loved to have seen most of this when I was just starting. I think I have reached a point of high convience and where the MOST limiting factor by far is the quality of the original CD. BTW movies dont sound to bad either! Let me know if you have any other questions.