I think the outline stitch you are referring to is nothing but an embroidery design that you import to the machine. I own a Brother PE700II and LOVE it. Have had it for about 3 years and only one tiny problem with thread breaking and after getting the tech to help me over the phone and then switching to Organ needles, no more (major) problems. Operator error doesn't count!! I paid arounjd $600 for mine and it is a refurbished one. Bought from Ken's Sewing in AL. Sometimes you can get deals from them on layaways left on hold. Also, they are good to deal with you on supplies, software, etc.
As to what you buy, it might depend on the size of the embroidery hoop. Mine is a 5x7. I haven't found too many that have a larger embroidery field w/o spending lots more $$. Although you can buy a hoop for "continuous" embroiderery, you will need software to split designs. I haven't gotten that proficient yet. :)
Edit: They have an eBay site too: easyterms is the seller name.