I'd go with a DDS3 or maybe a DDS4. DDS3 is 12gb uncompressed. I've seen a
few drives on eBay for under you budget. You can't go wrong with DLT IV
(someone [Sony?] released SuperDLT not to long ago, but I haven't looked
into it yet.), except for price. 

It all depends on how much you're backing up, and how often. For me a DDS3
would be fine. Incremental backup would probably get me by on DDS2 after
doing a full backup to a DDS3 tape. (For my one home box anyway.) 

I haven't had much experience with backups beyond DDS and DLT. I know
someone who has plenty of horror stories to go along with their Echo
soultion though. 

--
Andy Zbikowski, Sys Admin   | (WEB) http://www.ltiflex.com
LTI Flexible Products, Inc. | (PH)  763-428-9119 (EX) 132
21801 Industrial Blvd       | (FX)  763-428-9126
Rogers, MN  55374           | (PCS) 612-306-6055
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