I don't think you'll find a cheap embroidery machine. I have the Singer CE100 and it can use almost any format, some of the machines you have to buy only their designs on cards, this one you can buy them online and download right to your computer and start sewing them. It is also a very good sewing machine, it was around 500.00 at WalMart.
Good luck in your search, but remember a good sewing machine is an investment and you usually have it for years.