It's okay to go cheap, but don't go too cheap. It's all about control of the spray, and the cheaper ones aren't as sensitive which makes it harder to control the spray.
I've had an Iwata Eclipse gravity feed for about ten years now. I think I spent about $120 on it, and then I have no idea how much I've spent on paint and additional accessories. I researched online and found mine from an online art supply store for a lot cheaper than other places. I think Hobby Lobby carries the Iwata brand now, so you might check with them. Hobby Lobby is where I get my paint and accessories.
The coating is always a subject of debate. I use the Devcon 2-ton epoxy, which goes on a bit thicker and requires a turning wheel to cure, but it cures much harder than others and can withstand a lot more use/abuse than other methods. Dick Nite is another one, a little more expensive, but easier to use as you just dip the bait in it and go. KBS Diamond is another good one, it's about like the Dick Nite where all you do is dip into the can, but it's really expensive and hard to seal the can back up; they make it in a spray can, and I've been aiming to try that but haven't been painting much lately.
It's an ordeal to get started in, and takes a lot of learning and practice, but it is a very rewarding thing to do and a great stress relief. It's very handy to have bait colors that no one else has, or be able to paint discontinued color patterns that you love.