Cartridge and Phono advice for Classic 3

Usually Lyra and Dynavector seems like the most popular cartridges to go with VPI, followed closely by Soundsmith.
I have not heard Soundsmith but certainly you can't go wrong with LYra or Dyna depending on your listening preference.
If you want to be a bit more adventurous and have a chance to auditon, you might consider Miyajima as well. I am using Miyajima Zero mono cartridge with VPI Classic 3 and it is a sensational pair.Big meaty sound, a little woody, excellent speed, bass and slam.
However, Miyajima's compliance is a bit on the lower side, mono cartridge is 8x10-6cm/dyne which is the highest for Miyajima and I have no problem with VPI Classic 3. I am not sure of the current US retail price but some of the line should definitely be in your budget. However, Shilabe is probably fit right in your budget but has the lowest compliance at 5 and most likely would not work well. Kansui would be a better match for sure but it may be a bit beyond your range.
Try to audition it first if you have a chance!

Kpede683, I had Dynavector XV-1s on my old Classic 1 but not on Classic 3 and have Lyra Atlas but on a different table so the comparison is exactly fair I would guess. However, I did hear XV-1s and Atlas on my friend's Classic 3 as well. Dyna was a bit more roll off on top, very musical, bass is a bit fatter,a bit slower, nice big midrange. Lyra is more open, more detail, on a leaner side but with excellent smoothness and a touch of warmth, more detailed bass. In my system, I personally prefer Lyra but then Atlas is almost twice the price of XV-1s. I have not compare similar price Dyna and Lyra though and I have not heard Delos or Kleos but heard 10x5 and 20X many times.