I'll chime in on TeresaA's post about the new Singer Featherweight C240. I waited and waited until the price dropped (to $399, interestingly it's even cheaper now) and bought it from Amazon. It just so happened that my "main" machine had problems at the same time, so I used the C240 exclusively for about two months this summer. It did everything and anything I wanted it to do, no problems at all. I made tote bags, duffel bags, table runners, even doll clothes on that little thing, and some quilting too. I love the built-in walking foot, it really does work as advertised.
One caveat, it does not use standard low-shank presser feet, you need to buy the feet specifically for this machine. Some of the feet Singer offers can be used with the IEF and with some others you need to disengage it (which is very simple to do). Also, they may call it a featherweight but to me it's just as heavy as some other machines!
I also have the Brother PC 420 which is my "main" machine as mentioned above. I paid a little more for that one (from Overstock.com) and it sews like a dream. I feel that you can't go wrong with either of these machines.