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no loss in sound quality, if you pick up a good sound card to connect to your amps with. someone here has won a number of sound quality competitions with a carputer setup (with the right equipment, of course). that's how good it is.
compatibility issues are pretty much rare, if you read well before you start off. getting the right equipment goes a long way in reducing the number of headaches you get while setting it up and getting it to work.
from what i've heard, oem navigation systems are a little bit better than a carputer setup's navigation system. however, a carputer-based navigation system has more possibilities to improve itself. for example, you can download the database for the speed camera locations in your area, and adding other locations/points of interest.
a nice carpc systems looks better than having an indash system. it looks better, you have more sense of pride in building a carputer system rather than having mad spending money on a headunit that'll eventually become obsolete.
and yes, computer also do become obsolete after a while. but at least it won't cost you much if you upgrade piece by piece.
where are you located? there are tons of mp3car meets where you can see actual installs of the people here, maybe you could come by, check out different setups, and decide on your plans.
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