What to upgrade first

I suggest two moves at once. There's a NYAL SuperIt phono preamp up for auction right now on Audiogon. It can replace your existing NAD phono pre and the VAC line stage. Sell those items along with the MG-1 and get a newer used small Maggies with ribbons. Eventually you'll need to update your turntable/arm, but what I've recommended will give you a much greater sonic impact then spending your entire budget right now on a turntable/cartridge/phono stage.

I also like the suggestion of the Mogami wires.

Thanks everyone for your help I have decide to upgrade one item at a time I'm gonna start with turntable maybe linn

There is a couple of nice demo under full warranty Marantz tables with cartridge for sale here at what I would call a good price (below $1000 and you can make an offer, 2 days left on the listings - not affiliated). I wish they made a black plinth on this table. Has gotten very good reviews and comes with a Grado Red cartridge.

I've heard Linns and they do sound very good when setup well and tweaked / upgraded, but they can be tough to setup yourself and it is recommended that they are only setup at home.

I think the Marantz, Mogami interconnect and speaker cables I mentioned plus a nice phono preamp would run you south of $2000 (about $800 for phono preamp, not sure which one at that level). Again, I really like the Pro-ject tube phono box II and that would put you about $1600 total and would leave you $900 for upgrading speakers if you want to go that route...