I like the M lens option in that they are easier to source (buyable new as well) and there are reasonably priced choices (such as cheaper voigtlanders). At this rate I might be spoilt for choice and end up having more trouble finding a lens than a decent body :
The original two Voigtlander 35mm color skopar 2.5 lenses are LTM and go for less than $300 US on eBay regularly. Is there a reason you cannot order from Japan? I know there could be some tax, but it could still be worth it and a Canon P and color skopar would still be in your price range. I think the Nikon suggestion is $1000 in USD. I can't see you being able to get an S2 and a 35mm lens for your price. Impossible no, but difficult. A Barnack won't have the 35mm frame lines. The CL has 28mm and 40mm frame lines, but no 35mm and will most likely have a dead meter. The Bessa R is LTM and cheaper than the Bessa R2 by about half the price, but still will eat up your budget for the body only.