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You've got a great budget. Let's do this.
SM7 is a great start. Love this on Rock/Rap vocals, amongst other apps. That's the first part in your signal chain, and you did it right. Booyah.
The next thing I'd upgrade would be the Preamp, then the Converters, then add some software for your effects/compression needs.
If you're on a mac, go grab Logic Studio and an Apogee Duet, $1,000 bucks for that pair. Covers nice clean pre's, great conversion, and all the basic plugins you'll need, plus some bangin' software instruments.
If you're on a PC, go grab ProTools M-Powered, and an M-Audio Profire 610. $550, spent there. Then go put $500 into a few nice plugin's from Waves or McDSP, as the ProTools stock plugs aren't quite up to the level of Logic's from my perspective. $1050, done.
Spend the rest on some basic or DIY treatment to your tracking/mixing area.
Off to a good start, yeah?
Don't worry about outboard compression at this point. Just make sure to record at a conservative level in 24-bit mode (yellow is the new red) and you'll be able to use any number of DAWs stock compression plugin's to your hearts content.
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