Before you buy a Bose (they famously overprice their gear) take a look at these:
Cambridge Soundworks Radio CD
Boston Acoustics Receptor Radio
I have both, in different rooms. The BA sounds just wonderful (for its size) and the CS is much more feature-rich. Neither can compete with full-sized systems by any stretch (neither can the Bose, btw) but they are much less expensive than the Bose and will give you at least as good sound.
New Bose gear always sounds artificially boosted in the mid-bass to me, and generally lacking in low-bass. Of all of the 'mini' radios I've heard, the BA is probably the most balanced, but it lacks a CD player, if that's important to you.
Consider getting yourself a good set of bookshelf speakers and a receiver--you'll be able to pick something up that sounds *far* better than that Bose for the same money. Go to a good stereo shop (i.e., NOT Best Buy or Circuit City) and tell them you have $500 to spend on two speakers, a receiver and a CD player. You'll be surprised at the sound you can buy for $500!
[edit]: One more thing... When you listen to a new piece of gear in a store, take along a CD you like and are very familiar with. Then, listen for a *good long time* before making up your mind. Many cheaper boxes (and also 'boutique' gear like Bose) will sound really awesome for the first minute or so, but grow fatiguing after a few minutes. The trick is to overly boost the (mid) bass and the highs to make the music sound both deep and sparkly--but this will grow annoying after a while (it's also not realistic--certainly not the way the music was mixed). A well balanced system won't immediately blow you away, but will be much preferred after a long, fair audition against the competition.
btw... I don't have anything personal against bose... I just think that you can get equal or better sound for less money. Lots of people love bose and that's cool. It's just not my taste.