I know you can do that. I also could set up a 1U with nginx and upstream, but that's not what I want to do.

I also know about Windows server 2008 NLB

http://technet.microsoft.com/en-us/edge/ff711653

I don't want a whole extra big custom box in front of these servers. I also can't run the load balancer on one of the 2 machines on port 80 then run HTTP on 8080 or something either because the network traffic would kill it at the IP stack/adapter level.

So I need a managed switch like device.  Just a small box that goes in front of the machine with no extra licensing costs.

New Baracuda is out of the price range. I am looking to spend about $1000 total. If somebody has the model of a box that is more expensive, I can just pick it up on eBay used.