There is some hiss when using the R09's built-in pre - that's my one complaint about it. However, I have still been very impressed with the quality I'm getting from it (I'm a professional opera singer, so classical is the only thing I record).
I confess I haven't actually tried it with external mics yet, although I will be- I need to run it with my CMC8s (terrific mics for the price, but outside your budget- they run about $250) but just haven't had a chance yet since I'm usually running those into my other rig, formerly a JB3, but now more often my iRiver.
As for stealth: I actually recorded an audition the other day (I was singing) - I had the R09 hidden in my handbag and it was actually LESS muffled than when I've done the same thing with my external mics - go figure!
If you want any clips of classical stuff, pm me - I have a few bits and pieces if you want to hear for yourself.