What is your budget?
That's a pretty low budget for a new grinder if you're planning on making good espresso? But you're in the ballpark for a good used grinder.
I now see that my original post is a bit confusing. I just bought a Mazzer Mini grinder. Now that I will be able to get a good espresso grind, I'm in the market for an espresso machine (as soon as the gadget fund recovers). Tex's Gaggias look like a good setup.
I am making the quantum leap from a spinning blade grinder to a Mazzer Mini. I've tried a few cheap burr grinders along the way, and was disappointed. I will soon be looking for an entry level Espresso setup. Suggestions?
Rancilio Siivia & Gaggia Classic are both good beginner espresso machines, but both are much better after they've been equipped with a PID.