ditch the old grado blue....a weak link, and it may be defective.
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The problem could very well be your cartridge. I have a Grado Platinum on my TD160 and it is a great combination - beat the pants off of my Music Hall MMF5 after I made some of the tweaks recommended and described in detail on the following link: http://www.theanalogdept.com/thorens_tweaks.htm
Seems there's quite a cult following on TD160s and if you do decide to sell there should be a good market for it. But I'd strongly suggest some of the tweaks and a new cartridge before you decide.
I agree on changing the cart, an AT440ml for $90 would be a noticeable improvement. You should also consider having a better arm mounted on your 160. Linn??? You can also have LP-12 springs installed. Lots of things you can do to improve your Thorens. Do you question the setup done by a supposed pro?
I do question the set up, the cart doesn't look aligned to me with my simple turntable basics aligner. I thought about upgrading the cart, the arm & having it set up so at least I have a starting point but with all the added money wouldn't I just be better with a different table? That is the question I really need answered, should I sink $300-400 into this table or sell it & put it towards a different table?
I'm no fan of older lower-end Thorens' (compared to a VPI) but the problems you describe sound more like arm/cartridge issues. A 160, properly set up with a decent cartridge, won't have the issues that you're describing. If it was a used cart. and assuming it really WAS set up by a "pro" it may be the stylus is just worn out.