MINI/MIDI HI FI's

So my old Pioneer system is giving up the ghost (not playing some CD's, skipping badly on others - all of which are in good condition), so it's time to look for a new one. I'm not looking to spend the Earth as I'm half deaf as well as being tone deaf. My normal choice of music ranges from crushingly slushy soul (most of the time), classical, Brit pop (think Keane and you're there) and trance (the Euphoria collections).

Any tips on what to look out for? Are Ipod docking units that also combine a CD player and radio the way forward? Will I get better sound from my Ipod docked than the CD's themselves?

I've got a budget of around £500 (lets say $750) so I know that there are loads of systems well within my budget. Most units I looked at today were no more then £250, but none tickled my fancy. I'm thinking Bose, but would welcome any input!