Coffee Machine and espresso machine are two different animals.
GRINDER FIRST! Too many people overlook the grinder when it is the single most important piece in your brewing arsenal. Whether you have a $15 press from IKEA or a $25,000 custom made espresso machine in a coffee shop, the grinder is more important.
So, that being said, an espresso grinder again, is not the same as buying a coffee grinder. If you are going cheap on your grinder, the absolute lowest priced grinder to remotely consider would be the Baratza Encore, for about $130. The Encore doesn't have quite the necessary grind adjustment to make great espresso as it's settings are limited, but IF you know what you are doing, by adjusting the dose, you can pull a respectable shot with it. The lowest priced grinder I would recommend would be the Baratza Preciso, around $300, and the best value for the money is a Baratza Vario, at $459. Baratza simply makes the best home grinders at every price point. Their quality of build is far superior to cheaply made grinders like Krups and that sort.
As far as espresso machine, I'll give you 3 starter machines that I would recommend.
3) Gaggia Baby - $400
2) QuickMill Alexia - $1200
1) Quickmill Vetrano - $2200
I recommend taking a read at home-barista.
How to choose an espresso machine at the right price.
Happy Brewing!