First vinyl/speaker setup for $500?

I don't know if you can pull off both for $500-$600 without getting lucky with good deals on used gear.  Otherwise, you're going to end up with mediocre speakers and a mediocre turntable.

Personally, I'd go after one or the other with the money.  $500-$600 will get you some pretty good speakers.  Likewise, that amount will turn up a pretty darned good used turntable and associated equipment.  So I'd pick one and put the rest off for a birthday or maybe find a way to make a little money.

I was in the same position awhile back when I was getting into vinyl. I went with a used Technics 1210mk2 and haven't looked back. There are some other viable options in the price range that are belt driven or restored, but living in Philly it was easiest to find a nice Technics. Just make sure it's in good condition as it is a widely used dj table. There are ways to test the motor and arm that a quick search could find - but without a doubt don't invest in a heavily used table. Paired with a good cartridge it can sound great and has upgrade potential to compete with higher end tables. You can find cheap receivers with phono options everywhere. I was lucky to be given a Marantz 2270 through a family friend, and if time is not of the essence, looking for a used vintage receiver is an option. If on a budget, you may benefit by waiting and looking for the right deal.

I would definately go the used table and vintage receiver route. I was given a Philips 777 belt driven, suspended table that my father bought new 30+ years ago and it sounds great. Initially I made the mistake of getting a newer receiver without Phono Inputs, which forced me to use a cheap Behringer Phono Pre-Amp. I had the chance to buy a 70's Kenwood receiver with 2 phono inputs and I think that sounds much better. Hit garage sales, the Salvation Army, etc. My receiver, although not Marantz quality cost $2, sounds great and is great.

As for speakers, I'd say the same thing, look used. I have a pair of Infinity Primus 162's (great speakers for the $250 or so they were) but there are great vintage options. I recently sold a pair of Acoustic Research AR4x speakers that sounded great, they were just too big. I paid $5 from Goodwill for them and enjoyed them for a few months.

If your interested in this stuff, Audio Karma is a better forum for vintage gear. Kinda like the HeadFi of the vintage audio world. Its all about being vigiliant and in the right place at the right time.

If you go used and shop around you can put a wicked system together for $500 but its something a matter of luck. 

IME In this case (what kind of system can I put together for very little cash) asking what to look for is counterproductive. 

Skim craigslist in your comfortable driving range daily, or every other day. Use the google to determine if the thing you found is a good deal or not. Looking for a set of klipsch cornwalls for $250 will walk you right past the JBL studio monitors for $150 without a second look at what could be a better speaker...