another vote for PSA's PWDII. it's the best sounding dac i've ever heard at any price (although i've never auditioned a dac above 10k USD so grain of salt might be required here).
this months review in absolute sound also gave it a thumbs up, even when compared to units costing 2x and 3x as much. it's great for redbook but where it really shines is hi res imho.
forget about usb. i'm not a fan and am yet to hear a usb hook-up that comes close to using the PSA bridge.
best bet is buying a used PWDI and upgrading it to II status and getting the bridge. you're still well south of your budget limits but sacrificing nothing regarding sound.