Before you jump in, give some thought to the availablity of software (i.e. LP's) Do you already have a collection or were you planning on building one? I have recently re-entered the vinyl world starting with only about 50 albums I had frommy college and post college days in the 70's. I have since purchased a few 100 more but it hasn't been easy to find good Jazz material - which is what I like.
The garage sale stuff for 50 cents a record is worth about that much IMHO.I would rather have a new CD than someone's old brutalized vinyl. New vinyl is great but difficult to find. Somenew vinylis also "digitally remastered" so you might as well have the cd.
Check the following sites first to see how much there actually is that you want.
www.redtrumpet.com
www.amusicdirect.com
www.acousticsounds.com
www.gemm.com
P.S. I have a Michell Gyro SE Mk2,Origen live silver arm and shelter 501 cartridge which cost me 2300 new shopping carefully and is out of your price range. I prevously had a Rega planar 3 with Grado gold cartridge for $700 which I got to see if still I liked vinyl. While it couldn't perform like my current setup, it was great for the price and I resold it at little loss.