RE: sewing machine dilema
I thinking you should repair your machine. I just purchased a new Janome for $550. It is not top of the line, it's closer to basic. In your price range I think it would be difficult to find a good machine. New singers don't get good reviews. Some Kenmore's are made by Janome but you have to know the product code to be able to tell which ones. If your old machine does everything you want well it's worth fixing.
I don't know if you've been to patternreview.com? they have lots of information on machines and a board to post to with questions.
Happy Sewing,
Michelle I
DS 1 - 7
DS 2 - 5
DD - 1