I am very new for audio, so please forgive me if I say something stupid.

My wife has an ipod and I have a sandisk e280. So I cannot go for the dock. Currently I am playing them with a 3.5mm-RCA cable in a $100 Phillips shelf system's "AUX". I am thinking to get a better sound (I mostly listen classical). I am a graduate student living in an apartment, which is pretty sound-inproof. So I do not need a super loud one. And my budget is less $200 (I know it is small, but that is what I have for this.)

I guess I have to use the headphone jack because I want to use both players. So is the 3.5mm-RCA the only way. There seems two options for me.

1. A receiver +2 shelf speakers ($100+100)
2. A all-in-one PC speaker system. ($100-$150)

Which one will serve me better? And any recommend model? Thanks.