Todd covered most of the issues. A decent entry-level turntable from Pro-Ject or Music Hall will start around $300. Schitt makes a very good phono preamp for around $100. In the sub-$500 range the only powered speakers that I have liked are Audioengine. But they don't offer much bass. A couple years ago I put together a system for my then teenage daughter consisting of a Rega P1 turntable mated with a Rotel integrated amplifier and a pair of small Energy speakers, all used. Total outlay was around $600. Sounded pretty good, all things considered.
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