2. What do I need?
When building a hi-fi system you have to start somewhere. A source like a CD player or turntable, an integrated amplifier (both preamplifier and power amplifier in the same unit), a pair of speakers and quality interconnects and speaker cables would be a good start. Eventually you may upgrade or add to your system. One other benefit to separate components is that if you decide to upgrade a component, it's just that component being upgraded—the other components stay. Similarly, if you decide you want to add a tuner you don't have to replace your whole system.
Hi-fi systems are investments which deserve plenty of your thought and consideration. Your personal preferences, musical and possibly aesthetic—as well as your budget—will decide what sort of system to begin with. Your ears will tell you which products are right for you.
Where do we begin?
With the source, or "front-end." This is where the journey from recorded medium to aural satisfaction begins.