A good 2ch preamp?

Like Natalie, I recommend that you make the stretch. Today I saw an Audible Illusions Modulus 3 (not 3a) on Audiogon for $700. I owned that preamp until I got a Meridian 518 digital controller that gives me volume control of my dac. It's killer. The only slight downside to that pre is that it doesn't go aaaall the way down below about 30 hz. If you're planning to get speakers that don't go that low you'll be fine.
Another alternative. If you're going for a cd-only system, you might want to consider a cd player with a volume control and eliminate the pre-amp altogether.
A caution about your room. If you're planning to use homosote as a sound-proofing material, all I can say is that I know of two bad experiences with homosote (it's that stuff that looks like 3/4 inch-thick cardboard). In the first, it was put in an amateur-built vocal sound booth for recording. In the other, it was used as soundproofing in a dedicated listening room like the one you plan to build. In both cases, it created a very nasty, almost metallic sounding slap-echo (clap your hands and the echo sounded like you were in a metal tank). Do a little research about matierials for your listening room, and happy listening!

If you want to stay with your amp for now, you may want to try an inexpensive tube preamp. Check out AMC, Antique sound labs, Sound Valves or maybe even a used Dynaco PAS.

Paul: Is the preamp that you are thinking of the FT Audio unit which retails for $500? This is the one that had interested me.

David, no, I hadnt heard of that one, but it looks good. There have been several mentioned here, and one or two in Stereophile by Tom G ("Sam Tellig") and also listed in their recommended components in the last few years. I think Creek makes a really inexpensive one too. I've never been in the market for one, so I havent paid attention to the brand names.

I think some of the posts above have ignored the initial request, $300 to $500 and short on cash because of remodeling. I think there are good choices in that price range that Chris would appreciate hearing about rather than recommendations to spend more than he wants to.

Paul, a friend uses the Creek with one of the Aleph/Volks amps with good results. I almost auditioned it in my system, but he had forgotten the remote @ home (Palm Springs) and the unit had been left on mute. LOL. Kitch said that the Foreplay preamp he built stock (and then upgraded) was a nice sounding tube unit (both ways) and I believe that even loaded (with the upgrades) it caps out @ around $300 (the stock kit is $150). It states at the website that it is a good kit for the novice (you only require basic soldering skills).