andypalf:
So it sounds like most people favour 2nd hand gear over buying new with a budget like mine. I've got an X Electrical shop round the corner from me and I pop in from time to time but just don't know enough about it all to take the plunge. But I've just checked their website and they've got a couple of Rotel amps. Is it a safe rule of thumb that you can't go wrong with Rotel?
They've currently got a RA930AX, RA-971 Mk2 and a RB-200.
Not at all Andy, but you've got one of those budgets that can be either but going down the used route
might yield a greater return if you shop carefully. £350 for an amp and CD is good used kit territory. Have you had a look at Steve's Hifi? He's got some great used kit; there's a Sansui AU-D5 on there just now, £150, a Rotel RA-940BX for £99 and a Quad 33/303 pre/power for £225 (and is the best of the bunch on there and probably most of the rest mentioned on here, downside is it's vintage gear which you might not want this early on in the hifi career!).
He's got a Rotel RCD-965BX for £150 which will blow away anything new at the price, and a bunch of others too. Check out his site here:
http://www.steveshifi.co.uk/.
See also Greenhome Electronics who do the same kind of thing. The kit's cheaper, not quite as good, but just like Steve's place, it's all well serviced and the guy's decent. I noticed a Sony Sony TA-FB740R for a penny off £60 which is pretty good given it was a well plugged model a decade or so back. Good nick too, 50w per channel, phono stage too. The CD section has a Marantz CD72 which went for about £250-300 back in its day, but he has for £34.99 and back with Sony, there's a universal player; the DVP-NS930 v Qs Series with DVD/CD/SACD and it's also £34.99
Don't be too quick to knock the price; build quality will be good, and you can purchase a separate DAC (e.g. Musical Fidelity V-DAC - £150) which will transform the sound for the better and use the player as the transport (and being a Sony, it'll be fine).
So you're not stuck, you have options and I'd be Googling like mad and wising up beyond a few recommendations for old NAD or Arcam kit and the like - there's a ton of good used gear out there and you're at risk of passing up on a good deal.