It's a little bit above your budget, but just before Christmas the wife and I invested in
one of these (Cuisinart grind & brew, for anyone who doesn't want to click the link) and haven't looked back. This thing makes by far the best coffee I've ever tasted, and I'm convinced it's all down to the fact that the coffee is ground fresh every time.
It allows variable amounts to be ground, so you can make anywhere from 2 to 12 cups at a time, and you can turn off the grinder and use pre-ground coffee if you have some to finish off or fancy a change. Also has 3 strength settings, that *do* make a difference. We're currently on Lavazza Quality Rossa Beans (1kg is ~ £10 @ sainsburys). Oh, and it has a timer, so you can wake up to freshly brewed coffee in the morning (or rather, wake up to the sound of grinding coffee, which is quite loud!). Plus it has a good quality thermal jug, so your coffee stays warm for hours.
Seriously, go and buy one
You won't regret it.