Where is the problem? Tracking error?

Dougdeacon is exactly correct. Regarding the VPI arm... I use a small amount of damping fluid at the pivot. Start this exersize by knowing full well what the sound of your cartridge is with no fluid. As you compare that sound to that of using a single drop of fluid, you will hear a change. With my Benz LP, I heard the sound solidify and open up...after another drop, additional improvements ensued, until with one drop more, the sound suddenly closed down. I took a Q-tip, removed that last drop of oil, and I was in business. ..another point. I also found that by adding VPI's bias compensator, and having it set up that the little articulating arm was horizontal at the beginning of the record, and as the arm traveled across the record, it raised up to almost vertical at the end, I had to decrease slightly the amount of damping fluid at the pivot. I suspect that bias compensation acts like damping, but it also improved tracking slightly. My cartridge is best tracked at a very specific VTF. ...a bit heavier or lighter is detrimental to its sonic potential. I suspect that each cartridge off of the assembly line has its favorite VTF. Sure, they all work from .75 to 1.50 grams, but there is only one perfect force that is optimum...and that changes over time as the suspension changes, so that I find that I have to "tweek" my vinyl system every 6 months or so. I know it's nuts, but the rewards are high.

I was looking at your system, and I certainly would recommend you substituting those Cardas cables. In my system, they produced a congested, tan, muffled sound ...they may be ok in yours, but try Audioquest, Kimber, Anti-Cables and hear if your problem goes away.