Necessary background: I think "Hallelujah" is perhaps the most over-rated song in the history of minstrels, bards, singer-songwriters, and rock stars. I've grown to almost despise that song.
Having said that, I like Buckley's version, one of the only ones I do like (I like the original too). But when I heard "Grace", I was floored. What a wonderful song (actually, the first three songs on the CD were equally jaw-dropping).