I want a better sounding system, but I don't have much money. What to do, what to do...

OK... I have my iriver HD 120 so I actually don't need a CD-player (lossless rips would do). If I really need radio, I could stream it from the PC although it has semicrappy onboard audio.
It only needs to fill <30m2 of room, so I can save on output power. Its an appartment, so I'll skip on the subwoofer - at least for now.

So as far as I can tell, I "only" need an amplifier, 2 speakers and a cable for iriver/PC -> amp.
Budget is "as low as possible", but I want something that will match my Sennheiser 570 cans.

My girlfriend recently got a Denon M33 minisystem and a pair of Gale 3020 speakers. This is around the level of quality I'm shooting for (and before anyone says "minisystem = crap" propose something better than that at <500$ - and maybe even try to listen to the system).

So atm I am considering the following setup:
Cambridge Azur340A amp with a pair of Gale Gold Monitors. Any comments? Can I get a similar level of quality even cheaper? Anything I didn't consider, but should?

This is already a very heavy price for me (I'll be eating oatmeal for 6 weeks), so going much higher is not really an option, but I am tired of bad sound.

EDIT: I believe I used to have an account here, but I have been very busy starting school, getting into a serious relationship, having a courtcase and ....
Anyway - HI to everyone. HA continues to be an amazing resource - and the wiki is great. I still remember the first time I saw a MIDI setup in the late 80's when a teacher made a schoolday about digital audio. It is amazing what has happened since, and today I don't quite believe I grew up in a world with no internet.

I would spend less on amplification than speakers. Try to find a sonic impact tripath amp and put the money to better speakers.

Only one very low cost excellent[based on measured performance vs. known psychoacoustic models of relevance] performer of which I am aware: Infinity Primus 150. About $140/pair online. As for an amplifier, first check out the local thrift stores; maybe you'll find a nice 'older' reciever for about $20.00. You really don't want to use one of those little 5 watt Tripath jobs on small speakers; small speakers are inefficient. Clipping distortion will thus occur on dynamic music. If you don't listen to particularly dynamic music, then you may disregard this warning.

-Chris

Sorry... forgot to mention my musictastes.
Pretty varied, with the main entries being jazz (Miles Davis...), hiphop (mainly rap), folk (Leonard Cohen) and a bit of rock, punkrock and ska.

I suggested the tripath because karto said high power is not needed. I am sure there is at least a 20db range in the levels at which people listen to music - so some will use 100* the power of others ceteris paribus. 5w is enough for many people, depending of course on taste, speaker efficiency, and room acoustics.

I just googled for the tripath... that's a pretty intriguing little thing there.
Reviews are aparently really, really good (considering its price).

I'm going to look around for it - after all, getting good speakers and that little thing doesn't exclude getting a better amp later.

Thanks for your suggestions - keep em coming