Okay, here’s what you do.
Go with RCA connections, since getting an optical signal from you sound card to your receiver would be a bitch. Use Monster Cable, there is none better. Allow me to forestall any argument to contrary, as nothing anyone even God himself could say will sway me from this convictiong. Monster Cable is the best, period, and you should use it.
When you buy a receiver, you will want to consider what you’re going to be using it for. If it’s just for audio, you can get away with one that will only do audio. If you are going to hook it up to your TV (and especially your DVD) you will need to get a good one. I recommend Yamaha or Harmon Kardon. Pick it up, and it should weigh more than you do. If so, that’s a good sign. If it feels like a bucket of chicken when you pick it up, you will want to pass on it.
As far as speakers are concerned, you can get away with some relatively small ones to handle mids and highs, and a if you’re smart (which you are) you’ll get a subwoofer to handle the bass. Boston Acoustics makes a great sub. It’s tiny, and it “kicks the PA” so to speak. But all by itself it will run you about 1500 bucks, so you may want to think on a less expensive but still rather nice one. For speakers, I suggest Infinity or Def Tech (Definitive Technology).
Software, software, software… Hmmm. Like I said, I use Sonic Foundry Siren in addition to Winamp to do all I want. SFS is good, and I like Winamp, but I have a hard time recommending it to others because it’s about as user friendly as a sypphlitic rottweiler with poison oak.
You can check out other titles, such as Acid DJ, and I think you’ll find something you like. Make sure it will allow you to edit and merge audio in mp3 and not just wav, and that that you will be able to convert files from mp3 to wav and not just the other way around.
The editing part is very important. Consider Voodoo, by Godsmack. The first four minutes are awesome, but then it drags on in silence for another few minutes and then has some dinky shit at the end. You may want to chop the end off and just have the good stuff. You know, trim the fat. A lot of songs are like that.
Also, you will want to be able to clean up a song by dynamically filtering, re-encoding, and changing the preamp and all that. This is in case you get a crappy recording of a song that you like, such as Let’s Get It On. You can almost do you own digital remastering.
Hard drive. I would suggest a Quantum or IBM. Do not, I repeat, do not get a Western Digital. The price is tempting, but you won’t be able to hear your music over it. The damn things have a penchant to sound like a handful of jacks in a garbage disposal. Go with about a 20 ~ 30 gig hard drive, at 7200 rpms. Ultra SCSI wouldn’t hurt either, but I think that fast hard drives are over-rated. But that’s just me.
And last but not least, if you can spare 400~500 bucks, get a Nomad Jukebox. 6 gigs of mobile mp3 goodness. And it’s the size of your Sony Discman, too. Word. I can’t wait till Xmas so I can play with mine.
In any case, the last thing you must consider is that 3 gigs is about 500 songs. If you can think up 500 songs that you like, or if you have 700 CDs, you will need a large hard drive. Otherwise, you should be okay with a small and therefore cheap, 10 gig hard drive.
Let me know what you end up getting, okay?