order of improving sound quality in system?

Abaseballfan 1, I think your on the right track. My suggestion would be to (1)st consider your real world budget, (2)nd your audio room and how long it's likely to be your audio room (power outlets, equipment racks, placement, seating postion and room treatment options are all part of this consideration), (3)rd speakers, (4)th amplification, (5)th control center (pre-amplification), (6)th sources, (7)th cables. Caveats, (2) room treatment may need to be readdressed after speaker choice, (5)control center may be somewhat dependent on (6)sources, after all you'll need enough inputs and out-puts depending on the number and choices of sources, this is futher complicated if video and/or surround sound is part of the system.

Thanks for all the input everyone :)

I agree with Hack, though would add power (specifically dedicated lines) as being only slightly behind cables/wires. I came to this conclusion kicking and screaming, initially placing a much higher priority on speakers than on source (dead wrong, but some of us are slow learners). Any speaker manufacturer - Wilson springs quickly to mind - who tries to tell people otherwise is working a scam, as far as I am concerned.

Of course if your system is wildly unbalanced by one poor component, including speakers, it is not going to sound good. Balance and rationality is still of great importance in deciding on upgrades.

Speaker ----> Cd player ----> Pre-amp/Power Amp

That's for me. Cable should come last.

Regards

I think there is no "right" answer to your question. Speaker selection is Very important, but so is the preamp, poweramp, and particularly the source. Ultimately, it is the synergy between components and cables in the system, and the weakest link that will give it away. If your system had good but revealing speakers like, for example, B&W N-805, it would not sound good with a poor digital source, and you would be much better of with speakers offering less details and resolution. On the other hand, an excellent source, is more likely to provide a more positive overall effect in your system regardless of other system components. So in regard to your question, you really need to be more specific as to what the current components are...
Good luck.