Rediscovering vinyl - Question about phono preamp

OK so i get the urge to listen to some of those records which have been packed away for some time but don't have a phono preamp. So down to the local hi-fi shop I go and pick up a NAD PP1 phono preamp. Don't need anything too elaborate since my turntable is a mid-fi (at best) 15-20 yr old Dual. Back home everything is installed and the records cleaned, I pop on REO TWO and whoa, REO isn't supposed to sound this good. Their cd's generally sound terribly bright, but this sounds not bad at all. A week or so later I decide to a-b some cd's to records. What's this, my $125 TT is rivaling my $2200 cd player. No it is not quite as good, but pretty close. Now I'm thinking, "What would a $500-$800 sound like. Now I have the itch and have been looking at turntables ie MMF5 and 7 and Rega P3. I notice the MMF7 comes with MC cartridge. Question is will MC cartridge work with my NAD phono preamp? I know this needs to be upgraded but my budget only allows for one step at a time in which I would like to upgrade to a Lehmann Black Cube at a future date. So will it work or do I need to go with MM cartridge? Also what is the advantage/ disadvantages of MC cartridge? As always, thanks for the help.
The PP1 is for moving magnet or high-output moving coil cartridges only. A good low cost phono preamp that will play both moving magnet, plus high output and low output moving coil cartridges is the Rotel RQ-970. It lists for $199 and can be had used for as little as $100. They come up for auction on eBay quite often. It was favorably reviewed by Stereophile a few years ago. There are other good reviews also. Creek also makes a decent low cost phono preamp; they are separate MM and MC models.
if you look at a rega, get the dynavector 10x4 mk2 cartridge to run with it. not only is it an incredible pairing, the 10x4 is an MC, but is very high output, so it'll run in a MM phono input.

or you could look at the rega carts which sound good, but not as good, imho, as the dnavector.
Nad PP1 is for high output cartridtes 3mV or higher.
MMF 7 is a great table.
Creek is the best suggestion so far for MC cartridges for the value and budget as well.
If you need to stay with Nad PP1 you will be better with 3mV(ClearAudio Aurum Beta S) or higher MM cartridge.
MC cartridge makes a sence when it's 2mV or lower otherwise there will be almost no advantage to MM cartridge.
The high output Goldring MC that comes with the MMF-7 will work just fine with the NAD phono preamp and will shine even brighter when you upgrade.
Thanks guys. Now my next decision is which brand TT. I'm leaning towards the MMF-7 over P-3. Seems many think a new table is preferable to a used, due to setup calibrations and such. Is this true? Guess I'll have to do some more homework on TT setup.
It depends. If it's suspended turntable, it needs to "sit down" first and than it starts to give it's real sound.
In general MM Cartridges with 3mV and higher are better than MC with 3mV+.
You're Right on MMF7 over P-3.
Great story. I had the same experience a year ago when I bought a $150 turntable (Denon) just to record my old records (many of which aren't available on CD), and couldn't believe they sounded better than my CDs! Of course, my CD player isn't as nice as yours!