Over the last 2 and a half years I've built a killer system for about $850, including the aforementioned turntable, cd player, a really good tuner, pre-amp, power amp, speakers, speaker stands and dedicated audio rack.
So wait. Now I have a question (I am currently shopping for a turntable as well). Is there a benefit to a standalone pre-amp as opposed to a turntable with a built-in pre-amp?
Ultimately, yes.
I think the best turntables are completely stripped down and do nothing but spin and allow the the needle to pick up the signal from the groove. Isolation is very important and not having the amp near the turntable motor is a good idea. Also, if your turntable has a built in pre-amp you are stuck with that pre-amp and you have no choice in upgrading or tweaking that stage in the signal.
This guy does a better job of explaining what a phono pre-amp does than I could ever do, especially the third section about equalizing (RIP Edward Woodward) what your needle picks up -
http://www.gspaudio.co.uk/phonopreampstage.htmOf course, you might not care about this at all, the bottom line is what sounds good to you.
My current set-up has no separate phono pre-amp and it sounds better to me than when I had a a tube phono amp running into a modern integrated amp.
I should stress that I don't consider myself an expert or an audiophile, I'm just an enthusiast and I've gotten a lot of enjoyment from putting together, tweaking and changing my system over the years.
I have an Adcom gfp 555 preamp with a phono input (guy on craigslist was asking $100 but gave it to me for free because it was broken, I gave him a bottle of beer and it was an easy fix) running into a very old Dynaco ST-120 power amp ($60 at a yard sale, he threw in some other junk) which powers my ridiculously huge Cerwin Vega VS-120 speakers ($75 craigslist). To me it sounds absolutely thrilling when I stumble home drunk in the wee hours and throw on Mekanik Destruktiw Kommandoh by Magma.
I have the turntable I mentioned and a Sansui TU-717 tuner ($200 on ebay and the only thing apart from the turntable I spent money on, it's consistently rated as one of the best tuners in the price range and there are some ridiculous upgrade kits you can buy for it. Oh, and it looks beautiful. I have a dedicated radio antenna on my roof ($30). WFMU still sounds like shit but, from the low end in Leonard Lopate's creamy baritone to the crisp trebles in Robert Siegel's supercilious sneer, NPR sounds like I'm in the same room).
I have a shitty sony 5 disc cd player, but I rarely listen to cds.
The absolute best thing I have, the one thing that improved the overall sound of my system, is this audio rack (free. I found it in someone's trash).

And a pair of speaker stands ($10, yard sale).
It sounds crazy but getting the speakers off the floor and isolating the components, especially the turntable, improved the sound immensely. You can really, really hear it.
I'd like to upgrade my turntable, I'd like to replace the power amp with either a tube amp or tube or solid state monoblocks. I'd also like to replace the cd player with a dvd/cd player, one that plays absolutely everything. We'll see what comes my way, the thrill is in the chase.
Does anyone have any experience wirelessly streaming mp3s from a hard drive to a stereo? I was looking at what Apple has to offer but I'd like something that enabled me to scroll through what I have.