Please tell us your overall budget for your system and if you would be interested in buying used to potentially reduce costs and increase value.

I could start out by saying there are many pieces which I would consider the entry level in quality sound. With speakers it is important to listen to a variety of options based on recommendations. If you get a chance, listen to the Magnepan MMG for $600/pair. They perform way above their price point and are well regarded. If you don't need FM radio you could go with an integrated amplifier. If you do, the Outlaw RR2150 stereo receiver for $700 is a versatile unit which has been favorably reviewed and would be a good complement to the Magnepans. For integrated amps look at NAD, Cambridge Audio, and Marantz. Another cost effective option would be the Emotiva USP-1 preamp and UPA-2 power amplifier for $750 delivered. For a turntable, there are essentially three established entry level audiophile units. The Music Hall MMF-2.2, ProJect Debut III and Rega RP1. If you can find the Rega P1 in closeout for under $400 that might be another option. Good luck!

http://www.soundadviceblog.com/reviews/review-magnepan-mmg-speakers/
http://www.goodsound.com/equipment/magnepan_mmg.htm
http://www.audioasylum.com/cgi/m.pl?forum=speakers&n=29468&review=1
http://hometheaterreview.com/magnepan-mmg-floor-standing-speakers-reviewed/
http://www.stereophile.com/integratedamps/306outlaw
http://www.enjoythemusic.com/Magazine/equipment/0807/outlaw_audio_rr2150.htm
http://nadelectronics.com/products/hifi-amplifiers
http://www.cambridgeaudio.com/products.php#amplifiers
http://us.marantz.com/us/Products/Pages/ProductListing.aspx?CatId=HiFiComponents
http://www.hometheaterhifi.com/preamplifiers/689-emotiva-usp-1-stereo-preamplifier.html
http://www.audioholics.com/reviews/amplifiers/emotiva-upa-2-stereo-amplifier
http://www.vinylengine.com/phpBB2/viewtopic.php?t=17518
http://www.soundandvisionmag.com/features/2010/05/face-best-turntable-budget
http://www.stereophile.com/turntables/pro-ject_debut_iii_record_player
http://www.tonepublications.com/gear/exclusive-the-rega-rp1/
http://www.stereophile.com/turntables/507rega/

Strongly concur to the MMG and Emotiva recommendations. My vinyl system is sort of cobbled together and is in my living room with my video setup. I have a Thorens 171 ($500), Ortofon 2M Blue cartridge ($200), a Parasound Zphono phono preamp ($150), a Grant Fidelity tubed buffer ($190), and a pair of Emotiva monoblocks (traded for used). My cables are a set of Kimber PBJ interconnects and heavy gauge mass market speaker cable...total cost perhaps $1650 not counting speakers. The speakers are the recommended MMG's (a bargain at $600).

Lessons learned over the two years I have been putting this together...

1. Adding the tubed buffer made a big difference on my system It was very thin (weak, washed out, whatever) in the mid range and that fixed the issue. The next biggest change was when I stopped using my mass market Onkyo receiver to drive it and installed the Emotiva amps (they can act as a basic preamp as well).

2. Buy a good cartridge, better than you think you need, and look for one with an upgrade path.

3. If I had it to do again, I would buy a much better phono preamp. That is next on my shopping list (want a Graham Slee).

4. At this price level, the thing that will make the least difference to the sound is the turntable. Almost any $500 table from a decent company will work.

5. Do not forget all the vinyl toys that go with any setup...cartridge setup bits and pieces are critical. you will need a tracking gauge, set of tiny tools, and a good 'how to' set of instructions. You will need a stylus cleaning system, a record cleaning system, a cleaning brush, etc, etc...

All told I probably spent another $300 on a very basic set of odds and ends I needed to setup and play the system.