Thanks guys, this has all been great advice. I know I could count on the Audiogoners for some help.
I think its good advice to continue building the CD collection and just build the LP collection along side of it. I figure the worst case scenario could be that I end up not liking it and just sell all my vinyl gear and take a small loss. While I do have an NAD C 162 preamp that has a built-in phono stage (and a good one from what Ive read), I didnt realize that so many other important things are needed, as Calbrs has stated. I was thinking all I had to pick up was the Music Hall MMF-5, a needle cleaning brush, and one of those red record cleaning pads my dad used to have with the spray bottle of anti-static record cleaner. But I guess I have to realize Im not playing beat up 45s on my Fisher Price turntable like I was when I was 7 years old.
Honest1: I have been searching around on various sites including Amazon.com to see whats available. I was actually surprised at some of the things I can find, but also alarmed at how much some of them can cost, depending on whether it was out of print or not.
Kthomas: Ive looked at a few of those products. Havent heard any of them yet. It would nice to have BOTH a vinyl playback system and a good DAC/computer system.
For everyone else that suggested isolating the problem in my system, that is also a very good suggestion. Ive considered going with possibly a tube DAC, or a tube preamp, but since I dont have the money to spend on both a tube preamp and a new DAC at once, its hard to decide which is more important. I would guess that the DAC is more important. But all Im trying to do here is tone down the harshness in the system. Ive also considered the tube buffer, but read that the results from those things are less than what most would expect from them. I am planning to incorporate some kind of room treatments, building my own sound panels from rigid fiberglass panels. That should really be my first step, because no system is going to sound good in a room that isnt treated properly.
I guess in the end, the journey into vinyl is more interesting than just purchasing a better DAC and/or a tube preamp, but I need to evaluate this whole thing on a cost level too. Ideally Id like to see if my local dealer could lend me a Music Hall MMF-5 to bring into my own home, and borrow some of my dads old LPs just to give it a whirl, and then make my decision based on that.