yeah, the grados are really nice, but i find them highly unpractical; you can't use them in public because the sound escapes and bothers everyone around you, and they are not very comfortable to wear. that said, they sound phenominal.
i would say for your price range look at a decent set of senn's. i personally always go for the circumaural designs that block all noise from going in/out.
i have koss r-80s and bose triports which i really enjoy, but they are probably out of your price range. the koss ones come with a lifetime warranty which is nice, but don't sound as good as either the bose ones or the grados i tried.