I am a Jazz, Jam band (Phish), blues, and some rock player. I do mostly jazz and jam band stuff. I also play some gospel. I am looking for an amp that will be clean and will take pedals well. I played the deluxe reverb and really liked it but that was on the volume setting 3. I have read reviews saying that it starts to break up around 4. I am worried it won't be loud enough so i am now considering a Twin. Any Opinions?
The Deluxe Reverb does breakup pretty early on the volume knob. Obviously you know since you have tried it, but it is still very loud early on the volume knob as well. If my memory serves me correctly, it does indeed start to breakup around 4/5. If that wasn't loud enough, the Twin would be a great option. I like the cleans on the Twin a little better than the DRRI actually, and it doesn't get louder and cleaner than a Twin!

Off-topic: What rig are you currently using to get Trey's tone?
Trey definitely used a twin back in the day, and I just googled his rig and it looks like he's using a deluxe reverb as well. Fender tube amps do very well, but unless you've got a ton of cash to burn or want to emulate his rig exactly, you could do 90% as well with a cheaper option like a Hot Rod DeVille/Deluxe and spend the extra on tinkering with the amp or adding effects to help emulate the trey sound.

Are you playing live gigs or studio?

If you can afford a twin/deluxe reverb (or deville/deluxe, etc), get one, as they are awesome and always will be, but I tend to recommend getting a smaller combo for practical purposes. Unless you're playing outside a lot or a ton of house parties you'll most often be mic'd by a sound guy who will prefer less stage volume.

Go to a Guitar Center or Sam Ash, as they should have both, and A/B them, and then compare to a cheaper fender option as well. Don't buy them there, but if you're really set on a Twin or Deluxe Reverb, you'll do best judging for yourself.

Lastly, a lot of Trey's sound comes from the Languedoc and his effects. From what I've read he uses his vintage Ross Compressor a LOT, as well as a few Tubescreamers to get a bit more drive out of his Fender's, so I would look into getting at least that much of his effects setup and bringing it to the store with you to test out some amps. There are a TON of kits that will cover your bases on tubescreamers and compressors if you don't already have a few.