kennygarza,
Which way you go depends a lot on what you value.
I think the work on the existing trigger is the most cost-effective way to get a really good trigger. I actually bought and took delivery of the Timney, but didn't open the package and was able to return it. "Just a little Dremel work" was more than I wanted to do.
Instead, I did a little honing myself - my first trigger attempt - based on instructions from the internet. It was actually pretty easy to disassemble the trigger. It took longer to get the action out of the stock than to take the trigger apart - I got trigger disassembly/reassembly down to about 30 seconds each, plus the trigger honing time.
This isn't to suggest that you do it, just that it's likely the easiest trigger for a gunsmith to work on. If he takes much more than 20 minutes to give you a crisp, three-pound trigger...well, you might want to look for another gunsmith.
The only problem with trigger honing is that the makers don't sell trigger parts to you. If you pay $65 for honing, but then have to send the rifle back to Ruger for anything at all, they'll do a "safety check" and "fix" your trigger back to factory awfulness. (BT, DT, and have the T-shirt.)
Having a Timney doesn't fix this problem, either. Since they can't do their safety check, they'll likely refuse to work on it at all. At least if you have the Timney, though, when sending your rifle back to Ruger, you'll be able to remove the Timney and temporarily replace it with the factory thing they call a trigger.
So the Timney costs a bit more, and may not be a better trigger, but gives you the option of retaining your warranty. Dealer's choice.
Jaywalker