I bought a brand new 2005 XC Pro frame on eBay this summer for $489 plus $40 shipping.
I would imagine that you should be able to find at least as good a deal now, 6 months later and with the 2006 models arriving.
As for handling, it took some getting used to for me, because i'd been riding a rigid 1993 steel Stumpjumper until then, so it was a big shock. Steering seemed slow and sluggish. However, i discovered that what you have to do is go faster! Suddenly, everything feels right. I initially had RockShox Reba forks on it set to 115mm. Lowering them to 100mm helped a lot too, as did flipping the 10º stem upside down to lower the handebars. The stem preference might be personal (i was used to the long, low vintage XC position, i guess), but i think sticking to 100mm travel forks is a good idea with this frame in general.
If you've been riding more recent bikes, your experience might be totally different though.