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I would suggest the following for a system of that type.
1) A Harman-Kardon 3490 Stereo Receiver (around $350). It has good power, good sound quality, a phono input, AM/FM, and a subwoofer output, plus many other features/options. Nothing else in this price class even comes close.
2) A pair of Wharfedale Diamond 10.1 speakers ($350). Read the Stereophile review of these.
3) An OPPO BDP-103 CD/SACD/DVD player ($500). This is one of the best-sounding CD players you can get at this price, plus it plays DVDs and SACDs too; a real bargain.
4) A Music Hall MMF-2.2 turntable ($450). This is an excellent turntable, which I have used in systems costing far more money.
5) A Klipsch RW-12D subwoofer ($300). A very good subwoofer for the price. Better ones cost 2 to 3 times as much.
You can start with the first 2 items and go down the list as money allows.
These are all very good products for their prices. If you choose to upgrade later, you will have to spend 2 to 3 times as much money to go to the next level.