What is the chain of importance in analog system ?

I think the turntable is the most important componet in an 'analoge chain' and this is where one should start. The success of a record playback system depends more on its mechanical interfaces/synergy than on its electrical componet. If I had to make an order of effect it would go like this:
1) turntable
2) tonearm
3) cartridge
4) phono
Cartridge/arm matching is important as is cart mounting, alignment and tracking angle.
That being said I would pick my table first,then cart,and pick an arm based on the cart. Once you've got that together a dedicated phono could be something to extract that last ounce of performance out of your rig. Top notch electronics can't make up for poor sources, but a good source can make a pedestrian rig sing.(Isn't that why CDs took over in the mainstream?)
I do think the cart is responsible for the sound and resolution of your system and the turntable/arm responsible for extracting the most out of the cart. That's why I started with the TT.

I agree with the above suggestions regarding the phono stage, your budget could get you a good one new or used.

As Syntax points out next inline is the record player.

One that comes to mind thats well within your budget and looks to be interesting is the Well Tempered Amadeus which comes with arm.
I understand the more expensive GT Amadeus is identical to the Amadeus in everyway except for looks and finish.

My niece is replacing her current table at some point soon, Rega P3 and the Amadeus is on a very short list.

Since I have more money in my phonostage (Aesthetix Rhea, $4K MSRP) than anywhere else in the vinyl setup, I really should be in the phonostage-first camp, I guess :-)

But after going from a VPI TNT Mk. II with SDS to a replinthed idler-drive Lenco TT that made a truly profound improvement, I'll stick with my original chain.

And I really don't think the Rhea sounds much if any better than my old much-modded NYAL Moscode "SuperIt" (on MM carts) though it sure is a lot more flexible and user-friendly. Dave

Deep Pockets is first!!!!!!!

I learned first hand how important the TT is in the analog chain. When the VPI Aries first came out I went to the dealer to check it out. He didn't have the Aries but he had an Aries Jr. on display. The Aries Jr. was an Aries with the HW 19 Jr's platter and bearing. Everything else was the same. The Aries Jr. must have been a very short lived model because I never saw one before or after that one. The dealer said that if I wanted that one he would give me great deal and would then order the TNT 4 or 5 (I forget which one it was) bearing and platter and that would bring it up to a full blown Aries. When I got the Aries Jr. home I was very disappointed. The sound was very thin and I had almost no bass. I called the dealer and he assured me that everything would be okay with the new platter and bearing. Quite frankly I didn't believe him. I thought I had made a very big mistake. The following week the platter and bearing came in, the dealer installed them and I took the TT home. Everything else in my system was the same. The only difference was the platter and bearing. What do you know. The dealer was right. Everything filled out. I had a nice full bodied sound and the missing bass was there. It was then that I realized how important the TT is to the analog system. I don't have golden ears. There would have to be a pretty big difference for me to notice and believe me there was. A chain is no stronger than it's weakest link and the TT is the first link in the analog chain.