I would also go with an integrated amp on your budget. Much more bang for your buck. Good ones are made by NAD (C320, C340, etc.), Cambridge Audio (A3i or A500), and Rotel(970 or 971, etc.). These companies also make decent CD players. The Cambridge D500 or D500SE would be my first choice; or the older CD4SE and CD6 used.
At the next higher price point, a great integrated is the Audio Refinement Complete made by YBA. CD players include some of the other ones mentioned above (Arcam or the Planet).