ARC LS25 MkII preamp - Phono amp?

Its a line stage only. You need to get a separate phono stage - your selection of that will depend on your choice of turntable, tone arm, and cartridge, as well as your sonic preferences (if that is important to you). Oh yeh, and your budget! :-)

Line stage only on ARC's LS series - you'll need an outboard phono preamp, as @newbee sez.

Many thanks gents. I assumed that but you know what they say about  assuming

Another question, I'm more in love with the nostalgia of playing records than I am convinced in the fidelity of analog recorded music over CDs. Bottom line I'm not planning to drop more than $700-$1,000 on a turntable. I noticed some have phoni preps built in (Dual, Pro Ject, etc). Are the phoni preamps that are built in basically crap?

Meant "phono preamps"

When you say 'turntables' are you thinking deck/arm/cartridge? If so I think you will not have to worry much that it will challenge your CDP. But, I can't fault your logic. Personally, with your budget constraints, you might get the chance to find out if you even like the fiddling that goes on with a vinyl system. You can always transition to a high-end system if you do AND if you find sufficient music to justify the change. Personally speaking, considering the competence of digital and the availability of music both CD's and the internet, I would spend my bucks on the thing that counts the most and which we can never have too much of - the music. BTW, a well thought-out high end vinyl system, properly set up, can be outstanding with the appropriate recordings, but as you probably know it can't be had on the cheap, not even close. 

Good luck.