that does seam kinda low, however not out of the ballpark. From what I've personally found, usual bank's cut is about $20 for every $1000, on top of the xe.com rate. if you were in there a few days ago, likely in the same range.
you're kind of stuck because of where the rate is right now. A month or two ago you could probably get $0.95 on the dollar even with the bank taking their cut. Then again, a few years ago the rate was $0.65 on the dollar, so on the grand scheme of things not so bad.
- do you have about $1,000 more lying around? you can usually get a better rate at the US$10k+ mark
- consider opening a CDN $ account to wait till when the rate is better (HSBC would likely have one, if there's a Harris Bank, RBC centura, or TD Bank where you are, they probably would too. Wells Fargo and Citi may as well since they have some operations in Canada (not banking but loans))
- any of the above banks would likely offer a better rate as they deal more often in int'l and cross border currency
- phone a local travel agency to see who they recommend, there's usually one or two awesome players in a local area, sometimes it's a bank, sometimes it's a smaller money shop.