I was looking for a machine for a friend, and found the Janome 3128 for $139.95 at the Janome dealership. I later saw it for less in a JoAnn's or Hancock's flyer (I can't remember which), but I'd rather buy from the dealer and kow the service is included. It's a 3/4 machine, weighs about 11 lbs., and had some built in stitches. Great for a beginner and to take to classes and workshops.
Also, my sister recommended the BabyLock BL9, which some shops have on sale right now for $99. DS is a Bernina person, so for her to recommend a BabyLock, it must be a good machine.
I always recommend that you buy from a dealer, because you can try out the machines and they have the service people there.