Everyone's tastes vary. I find Music Hall players very dull and boring. I've heard them suck the life out of many very good systems.
For about $500, it doesn't get better than a Rega Apollo IMO. They were going for around that price a month or two ago, but have been creeping up for some some reason. Maybe the economy really is getting better? The Planet 2000 is an excellent player as well.
To be honest, I'd go with an inexpensive transport and a DAC. The universals like an Oppo aren't a bad idea, but I haven't heard them. Connect them to a good DAC, and you've got music and movies sounding great.
There are a tone of DACs out ther that'll fit your budget, new and used. I got into the music server thing last year and bought an Apple TV and Theta Cobalt 307. Sounds great to my ears. No looking for discs, changing discs because I want to hear one song, etc. In some ways, it sounds better than my Apollo. My Apollo has a better toe tapping quality to it, but its not that far behind. Last I looked, there was a Theta Cobalt 307 listed for $150 with everything included. Add an Apple TV (with internal hard drive, not the new one) and an iPod Touch to use as a remote (if you don't want to use the Apple TV's remote and your TV), and you should come in right at your $500 budget.