Speakers and TT for NAD 3020 Micro-Budget System?


I am a complete stereo newbie and I was looking for some guidance on building my first micro-budget system. I recently picked up a NAD 3020 off CL for $40 in mint condition. I am looking to match speakers and a TT to this system. I have very little money but was looking for something that sounds musical and is tolerable - I'm not interested in a perfect sound experience, just to enjoy listening to records.

My budget is about $400 for the TT and Speakers. I could push it up to $500 if there is a real upgrade in performance. The room is a very small NYC basement apartment. Approx 10' x 10' with low ceilings. I primarily listen to rock with some jazz and no classical. This system will be used almost exclusively for listening to vinyl and that is the primary focus at this time.

I am very happy to purchase used. I know many of these threads conclude with "here are some good ones, you should listen to them" but this is simply not going to happen. There are no used hi-fi stores that I am aware of in my area and anything I buy will more than likely be shipped from far away. I would most like to hear something that you would personally be pleased with in this price range with these specifications.

For speakers there seems to be a consensus that Paradigm Atoms and Mordaunt-Short MS 10s are legends in this category. For TTs, I am thinking of a used Music Hall or Rega entry-level or a vintage Thorens (one of the less coveted older models like a 115) or Marantz that has been cleaned up.

Thanks in advance for reading this and for your help! This is a very intimidating new world and I appreciate all of your expert advice.
powersofi
Powersofi...if you decide to go with a tt like the Audiotechnica or similar with a built in phono stage, keep in mind that your NAD 3020 has an excellent onboard phono stage and you should bypass the table's phono stage and use the NAD's phono.
12-28-09: Cmalak
...if you decide to go with a tt like the Audio Technica or similar with a built in phono stage, keep in mind that your NAD 3020 has an excellent onboard phono stage and you should bypass the table's phono stage and use the NAD's phono.
Yep, that's what my son is doing too; we use the phono stage in his HK receiver. The two units (AT TT & HK rcvr) work well together.
This is what I would buy if I was in your shoes as far as spks. I checked the FS section here under "Monitors" and I saw a pair of Dahlquist M903's for the asking price of $125/BO. The seller (which I no not know) is located not far from you. Ask him a few questions. These would be great sounding spks. That would leave a good portion of the budget on a TT!
Thanks to everyone's very thoughtful responses so far. I really appreciate the time and consideration you have taken for your suggestions. I have decided to go with Cmalak's suggested M-S Avant 902i. The discount was extremely good and it included free shipping and no tax in my state. I couldn't resist!

I understand these speakers are bi-wireable. I have been reading up online and I don't fully appreciate this concept yet, but I will read more. However, my more immediate concern is how to correctly wire this to the 3020. I have seen some diagrams but haven't fully grasped the concept. If anyone has suggestions on the most cost effective speaker wire to get for this setup and exactly how to wire to the 3020, or links explaining, I would be extremely grateful.

The speakers ended up being a late holiday gift so my TT budget is between $300 - $400 now. My main concern is trying to find something locally or from an extremely reputable eBay or Audiogon seller. I am very worried about having a used table shipped a long distance. I live in the New York City area, are there any decent hi-fi shops for used items? I know there is Stereo Exchange, but I believe they do only new. Any closeout deals for good value new items online would also be great.

Again, thanks to everyone for their speedy and very detailed response here. I really appreciate the time everyone took to voice their opinions and experience. I will keep this updated as the pieces fall into place and I inevitably have more questions. Please keep the feedback coming and thanks again!