Most important component??

Reality is, every component can significantly improve or limit one's system.

I agree with my Cache Valley neighbor, Duke about room/speaker interface and amp/speaker synergy being crucial. Preamp/amp, particularly proper impedance and sensitivity matching, is very important.

Been there and done all that at a costly learning curve.

I'm now upgrading my digital source and hear significant differences between various design approaches and price points in my own system (not at dealer showrooms). These differences are no less profound than imposed by any of the components downstream.

Just the way it is...

Bob_reynolds, agree 100%
I have found that in order of imnportance:

1)Speakers (assumed appropriately sized to intended room)
2)Speaker placement w.r.t. room and listener
3)Amp
4)Preamp
5)Digital source
6)Speaker cables
7)CDP/Pre Interconnect
8)Pre/Amp Interconnect

I love it--THE ROOM. Now what is really interesting is that about 4 years ago we asked the same question on a different site. The result was speakers, source, speakers, source, amp.... You get the point. 1 in 100 said the room. Now, most people say the room. 50% of the sound we hear in a typical room is indirect--reflections off the room (or modal energy). The room is huge--and as has already been said, the room / speaker interaction is essentially a circuit. Having the right speaker in an appropriate room is key to a great end result. It's great that people are realizing how important a role the room is--it really is a component. The first one we start with and it used to be the last one people would think about--not anymore.

Glad ya'll enjoyed the crystal ball thing.

Avguygeorge, sorry but a dishonest clerk who works in a Nigerian bank already beat you to it.

Well Rives it looks like you are no longer a lone voice crying in the (correctly damped and highly diffuse) wilderness. Just for the record, folks, a couple of years ago I spent a few minutes in the Rives room at CES and the sound in there was magnificent - especially for such a small room (1/2 of a St. Tropez "mini-suite" - maybe, I dunno, 12 by 18 or so). It had a big-room richness that totally belied its modest dimensions. The Avalon monitors in there were obviously a very good match to the room.

Duke

Speaker, Amp.

The faulty one!

Beyond faulty components the speakers are by far the most important. They introduce the most distortion and in any system and for a given room may or may not work. Name me any other component that can reduce total distortion by 10% or more.

I don't believe that speaker wire make any difference, as long as it meets basic requirements regarding resistance versus lenght. If the resistance of a wire is .09 ohms over it's length it will make a very small contribution to the electrical path comparing the 6 or 8 ohms of a traditional speaker. Even if it measures .5 ohms it will simply take a little more power to drive the speakers to a given level. There are many articles out there to substantiate this view.

Ron