Great preamp, but I can't say that I've heard it myself. The DAC1 has a passive preamp, which is pretty good, but it doesn't have any switching abilty, and if that is something that you need, then I would recommend the Benchmark DAC1-Preamp. It just won a Golden Ear Award for 2009 in The Absolute Sound this month. You could probably get one one of those used here within your budget.
http://www.avguide.com/review/tested-benchmark-dac1-pre-digital-analog-converter-and-preamp
http://www.avguide.com/review/tested-benchmark-dac1-pre-digital-analog-converter-and-preamp