Audio Research SP16 annoying volume control

So if I match the pre-amp to a ARC power, then I presume that this would fix the problem?

Matching to an ARC amp will not necessarily fix the "problem". You either need to step down the output from the high level sources as I indicated above or buy one of their newer preamps, such as the SP17, LS17 or LS26 which have more steps (nearly double) in their volume control settings. Of course you could choose to leave things as they are and enjoy the music albeit without the ability to adjust the volume exactly as you like.

Or consider something like the Rothwell attenuators. Might be your cheapest solution. I haven't tried them, but heard good things about them. Search the discussions for Rothwell Attenuators. They might do the trick.

Kingmonkey88 - Had the same problem with an older SP8 that I had upgraded. Not enough options at the low end of the volume scale. Also had some of that problem with the LS15. This was with an ARC amp (and several other amps). I think Elberoth2 and others nailed it (and this is what I'm doing): Send the pre-amp in ane get the gain reduced. It's a bit of a pain, but worth it.

Audphile has a good suggestion, by far the easiest, cheapest way to deal with excess gain. I'm using a -10db. pair between my cd player and preamp with no audible degradation I can hear. It will give you finer incremental volume adjustments.