Better Electronics or New Cables???

Well you didn't specify what you have. $1000 these days don't buy you much. If you have lower end electronics, then $1000 is a decent amount to spend on electronics. If you're pretty hi-end, then you should go cables and tweaks. Black Diamond Racing Cones and their other stuff will work wonders to your system.

Rockvirgo, it's a shame that you don't listen to vinyl anymore. It's terrific nowadays.

There a several magic numbers and divine ratios to be found in the natural sciences. I won't pretend that this is one of them, but it has been my observation (over 30 years of buying audio stuff) that, much like a doubling of power to achieve 3db of additional gain, a doubling of cost is needed to realize a significant difference in quality of components at ANY point in one's system. I know that some products are better values than others, and there is a lot of outrageously overpriced crap available. However, as a general rule, you will need to spend your $1000 to replace something that sold for $500 or less in comparable condition (new, used, auctioned, etc.). In other words, replacing a $1000 amp with a $1500 amp will yield imperceptible improvement, unless the former was flawed or the latter bought used. Replacing a $500 CD player with a $1000 CD player will almost certainly be significant to any listener. Make your investments accordingly. Buy used whenever possible, especially low-level electronics, and wire.

Hey bubba - - $1,000 on cables interconnects, even on the used market won't get you far. It all depends what your front system looks like (e.g. speakers, amps, transport, preamps, etc.). If your just getting into the audio nirvana and are using at least decent stuff; your notr going to here anything if your using cheap gear. 1st stop = speaker placement, sweet spot, 2nd stop = good speaker mains, no matter what you do back there, it still gotta come from your speaker. 3rd stop = amps, this is whats going to push it; you gotta match your speaker and amps, 4th stop = CD/transport and the list goes on. I'd say, spend no less than 20% of your components value on interconnects, powercords, speaker cables, etc. If you buy good, brand named IC's, you can always sell them, less at least 15% less of what you initially paid on the used market.

Both! But electronics first - cables are as important as any component in the chain. Generally components are a bigger investment so alot of people cable up or change cables several times before upgrading other components. IMO start with your power - dedicated lines if possible and then get the best front end you can afford. Next get after market power cords for every component that is detachable. I would then go for your lungs on an amplifier, then preamp unless you're bypassing this stage. Then cables, then speakers. Alot of people go through this process in reverse but I think really solid power and electronics will make make even average speakers above average. When you have completed each step - START OVER!!