Dan, for a good, inexpensive compact system consider the
Onkyo CS-325 .
Here's a Canadian source.
I don't have this Onkyo system, but I have an Onkyo micro system (CR-n1) that I have used for years for a computer system. It is great, and has Burr-Brown DACs. (While that may make zero difference, I think it indicates that Onkyo built this unit with some aim at quality rather than just re-badging a random Chinese product, ala Sony.) My unit does not have i-Pod controls, but ifyou can find a newer version (such as the one John shows) with IPod control I would recommend it. Very good sound for small spaces, and in small package.