I haven't had a Rega in a while but I think the addition of the Audiomods Classic arm would be a worthwhile upgrade. You get a much better arm and VTA without spacers. If you are handy you can do the kit for around $500. You can then sell the arm you have to help fund the purchase. I have one mounted to my VPI and think it is a very good upgrade. A few guys at Vinyl Engine have some things to say about it.
http://www.vinylengine.com/turntable_forum/viewtopic.php?f=32&t=55762
http://www.vinylengine.com/turntable_forum/viewtopic.php?f=32&t=55762