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Have a look at your car's stock speakers. If they are cheapies (e.g., "dual-cone" instead of two-way), you will realize a huge difference if you upgrade to true two-way. Dual-cone is the speaker manufacturer's attempt to get decent highs out of a single driver, whereupon they attach a cardboard cone to the woofer's dust cap to simulate a tweeter. It doesn't do much. decent 2-way 6-inch door speakers can be had for less than $100 a pair.
Secondly, what kind of features are you looking for in a head unit? Just basic CD playback, or one that can play MP3/WMA files? Do you want to hook up a changer in the trunk?
With regard to an amplifier, it would help, but these days most decks are "high power," claiming 45-60W x 4, which works out to approximately 20-27W RMS per channel. Better than the decks of yore, but still falling short of a dedicated amplifier, which you probably don't need.
With regard to imaging, some decks allow you to adjust the delay for each speaker to make it appear as if you were sitting in the middle of the car, equidistant from each speaker. This was a key consideration of my choosing the Alpine 9811, while remaining in my budget of less than $300US for a head unit.
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