I agree with many of the others that the likeliest cause of the problem is related to cartridge installation and adjustment, including VTF. One thing that hasn't been mentioned is anti-skating. Take a look at the cartridge from the front, while a record is playing, and see if the cantilever is pointed approximately straight ahead, or more precisely, that it is at the same angle as when it is lifted off of the record. If there is a significant deflection of the cantilever to the right or the left while the stylus is in the groove of a rotating record, relative to its rest position, it means (IMO, at least) that anti-skating is significantly misadjusted.
However if further work with the cartridge-related adjustments does not resolve the problem, overloading, as mentioned by others, is also a strong possibility IMO. I say that despite the fact that the SL1 appears to have unusually good overload margin.
08-11-14: Pakwong
Answer to Jfrech:
"Do you have the Bob's devices SUT into the MC or the MM input on your CAT pre?"
CAT SL1 Ultimate MK2's phono stage are thought to be MM only. Is doesn't comes with MM/MC switch.
According to the specs shown
here for your particular version of the SL1, its phono stage gain is 47 db. The lowest gain setting of your SUT (which I assume is the setting you are using) is 26 db. The line section of the preamp will add up to another 26 db depending on the setting of the volume control. That all seems very high even for a cartridge rated at 0.3 mv.
So an experiment that would seem to be very much in order would be to see if the distortion still occurs with the SUT removed from the system, even if that results in unacceptable noise levels.
Susceptibility to overload will be further increased (especially when high frequency energy is present at high amplitudes, consistent with your description of the problem) if the cable between your SUT and the preamp is long and/or has high capacitance per unit length. The capacitance of that cable, as seen by the cartridge, will be multiplied (not divided) by the square of the voltage step-up ratio of the SUT. In other words, by 400 times (for the 26 db gain setting). That will raise the amplitude and lower the frequency of the ultrasonic resonant peak in frequency response formed by the interaction of the inductance of the cartridge and the capacitance it is loaded with.
In addition to keeping the cable length between SUT and preamp short, you might try putting a load resistor across either the input or the output of the SUT. I see that the recommended load resistance for your cartridge is specified as ">30 ohms," while the 26 db gain setting of your SUT together with the 47K input impedance of the preamp will result in a load of 118 ohms. You might try something like 50 to 100 ohms across the primary (input) side of the SUT, or 20K to 40K across the secondary (output) side.
One final point: You mentioned that the problem remained when you tried a single-ended tube amp. If that amp provided an XLR input even though its internal signal path is unbalanced, and if you connected the preamp to that amp with the same RCA-to-XLR cable used with your ARC amp, the cable is not ruled out as a suspect. If the unused signal pin on the cable's XLR connector (generally pin 3, although possibly pin 2 in some countries) is not grounded (i.e., connected to pin 1), it could account for the problem. Proper connections within the cable can be easily verified with a multimeter.
Hope that helps. Regards,
-- Al