I agree if you go charcoal get weber kettle, I've even seen basic ones at HD for $99
You might be able to find a used Weber gasser on craiglist. I picked one up for under $100, and slowly made some upgrades like replacing the burner tubes, grill grates (as hub mentioned), and I just replaced the manifold. All said and done, after 7 months I put in less than $350 and the grill works like a charm for one that was new pre 2000.
As for coals, I like Stubbs. Can't go wrong with Kingsford, especially when they have the 2-20lbs(Now 18.6lbs) bags for $10. Lump or all natural charcoal burns a little hotter.