what to TURN to when starting $1000 budget

I agree with Schubert that a headphone system provides great sound/dollar. I have a pair of AKG701s with headphone amp and they sound wonderful. Based on your post, I don't believe that is what you are looking for. Here goes one person's opinion on a speaker based system:

Marantz makes a great budget integrated amp. Look for the PM5004 or 6004. They both have phonostage. There is a new version out (the 5005, 6005 series) so the 04 series are discounted making them a great deal. Try Amazon or go to Music Direct online.

Project had the Debut III ($300) and the Debut Carbon($400), both complete with cartridge. Shipping TTs can be a problem when buying used online. Again try Music Direct or Needledoctor online.

The Pioneer SP22BS are a great deal for the $130 asking price. To do better would cost ~3x as much. There are many good speakers in the ~$350 -$500 range. I am hesitant to make a recommendation at that price point. The thing about speakers is that they contribute the most to the character of a system. When one is just starting out one usually is not sure of ones true preferences. My thinking here is to buy a quality budget pair, enjoy the music, explore the marketplace and upgrade speakers later and experience your system all over again. Same is true for headphones.

Headphones always a good way to start on a budget.

Otherwise, an existing computer as source with integrated and decent quality monitors in general is a good way to go to start. Add a sub or subs later if needed.

I'll second Mesch, I have a pr of AKG 701'a as well I like.
Another great phone is the B&W P3 at $200 new.
Grado phones are very popular, great rock phones but a little rough and ready for acoustic music IMO. Their model 80 is a great buy as well.

Just went through a major project reading up on latest and greatest headphones and related technologies and listening to various ones I could find access to.

In the end, I found the same old stand by lines to offer best sound and value IMHO. AKG, Sennheiser, and Audio Technica mainly.

Many others were OK but nothing special.

Like home audio, having a suitable amp to drive various models is a key, but does not take much to drive most phones well compared to speakers.

Audeze were nice but pricey. Hifiman offered a unique product for good value.

Grado, Polk, PSB, B&W, V-Moda, all OK, nothing special though better Grados can compete.

Would have liked to hear newer phones by Focal but no chance so far.

Stax still sound fantastic, but very pricey these days.

Lots of different aspects of comfort and features to help distinguish phones beyond ability to merely sound very good, which most decent phones do.

I have some suggestions.

VINTAGE is the only way you can do this, putting together an entire system with new components at those prices will be impossible or simply not worth it. I am assuming you have space, if not some things change adjust as you wish.

Speakers:
Big
Klipsch Heritage (Any)...$300-$2000
think heresy for now

Small
Dynaco A25...$50 dont pay much more
Mission Bookshelf $100-$400
JBL (rules = blue + old), but Shhhhhh its a secret


Amplifiers:
Heathkit AA 151...$100-$400 (buy new tubes)
this one is integrated and with phono section
The phono is not great but will do for a time

EIco HF XX ...$200-$600
This one is also integrated with phono, also buy new
tubes

Scott integrated 2xxx ....(more money)

Class T amp... $15-200 (yes $15 not $150)
If you speakers are efficient enough (i.e/ something
from the list that is 95db or more. Try a class T
amplifier like the dayton DTA-1 or a trends. It sounds
unbelievably good with high efficiency speakers. These
need an external phono

NAD...$100-$500 ( not my fav but also good integrated w/
phonos a lot of the time)

Cambridge...$20-$600 (also not my fav most of them are
integrated but no phono)

Marantz PM series $200-$1000 integrated with phono and
again not my fav.

Phono: (If Needed)

Buy an old receiver, OLD, make sure it has a good
phono section in it by reading on the google
machine. Then use this old trick. Plug the turntable
into it, and use the tape out, take the tape out into
your amp/integrated pre-section. BANG, you have a
phono stage many times better at handling RIAA than
the typical stand alone CRAP made today (in your
price range).

Turntable:

Thorens, think thorens...$50-$400
maybe the TD-160

Old technics 1200...$variable

Cartridge:

This is the bad part, on the budget you have to stick to MM and perhaps used. the good news is there are tons of mediocre/mid fi carts that are much better than you would expect.

Grace f9...$do not know anymore but if you find one in decent condition BUY IT

Audio Technica 440 MLA...$cheap

Ortofon 2m Red ...$100 (new)

Sure M97...$100 (new)


Cables/Wire: DIY, think Mogami, Canare. Should be able to get off cheap if you DIY.

CD Player:

Do not buy one...just kidding.

PS1.....$10-50 (You can try a PS1 Model SCPH 1001, I dont listen to CDs much, but it is nice.)

Digital/Other:

Headphone out of you laptop running Jriver....$50 for software and the cost of the laptop is sunk. If you dont have a laptop, but one of those and forget audio, you will thank me for it.

that is the best I can do for about a Gee-Note. Depending on what combination you chose, the tubes used, condition and you ability to do some little tweaks. I think you can get a half way decent sound, provided that you dont mind having an eye sore in listening room. Good luck, I would love to see what you end up with and how you like it.

But do keep one thing in mind, this will ABSOLUTELY not be the last $1000 you spend on audio. This is the beginning of a slippery slope. The sickness has already set in, since you are posting this...and it may not be too late to run away now while your wallet is still full.

Best of luck with you new system. Enjoy!