Go to several sewing machine dealerships and try the electronic machines. That should give you some idea of the features you like best and what you really need for your purposes. You already know about the mechanical machines. I like the mechanical machines for the heavy lifting, most of them have all metal parts and take the pressure better. The electronic machines have a lot more "handy" features that make piecing and quilting a lot faster and more fun.

I have several cheap mechanical Brother machines and an embroidery only machine for $300 . All are good machines.
My every day machine is a Viking Sapphire that cost $1100 when I bought it years ago. I love this electronic machine.
No thread cutter but love the needle down and auto foot start and stop feature. I use coats and clarks thread with no problems and Connecting Threads thread with no problems.
I would not buy a cheap electronic machine but my embroidery is electronic and it was cheap. Havent had it but a few months so dont know how well it will last.

I have a 6430 Viking - refurbished and in great shape and have around $00 in it. It was top of the line and I take it to any classes. Love it. I also have a Pfaff 1473 that I bought new in 1989 and it has been serviced ONCE and I use it almost every day - has almost 200 decorative stitches and a needle threader and I can do writing with its 6 alphabets. Do not discount the oldies but goodies.

:) When I bought my Singer 9005 (1990 with 5 stitches plus buttomholer), I was angry at my former machine and bought something very simple but not cheap -- now I wish I had bought one with more stitches as I would like to have a blanket stitch and a few fancy stitches -- my machine isn't tempermental and works great except on thick things -- I would check out top-of-the-line used mechanical machines from a sewing machine store (Kenmores and Singers as well as others) -- the emachines sound interesting but some seem to have problems -- good luck!!

I have 5 Singer mechanical machines: 15-91, 221, three 301s. Love them all. They never break. I use them for piecing quilts and quilting.

I have a fancy Janome Horizon which is a great machine, but I rarely use any of the features. I have my Mom's old Singer, but can't remember the #. The Singer is a workhorse that has never had a problem in 60 years. I remember when she got it and I learned to sew on it. My favorite was my Kenmore limited edition which DH bought for me for our 5 year anniversary. I gave it to my niece when I got a fancy machine. She sold it at a garage sale for $20. In my guild lots of the gals are getting Kenmore machines esp to carry to classes.

My budget is small, about $400. What are your thoughts - stick with the devil I know and buy a mechanical or join the 21st century and buy a digital machine? Help!

Tashana..I'm surprised no one has mentioned Juki...I bought an older TL98E off Ebay for under $400. Granted I took a chance, but heard so many good things about Juki, it was worth it.. LOVE the thread cutter and needle up/down, etc on this machine..the only thing missing is the auto threader, but I've gotten used to that, as it doesn't pull out the thread when starting to sew like my Janome...I never realized what is was like to sew on a real machine.. The TL98Q has the auto threader. It might be something to consider. You can't go wrong, at least from my experience....It was too fast for me, so I wedged a piece of yard stick under the foot pedal. Now it's perfect.....
Hope you get what you want in a machine...It's fun to review, and read as much as possible.....

For a lot less than $400 you can buy a used Elna, Bernina or a Singer 403 or a Singer 503 an old Pfaff. If you don't want to work on one buy one that someone you can trust has gone over and made in working order - then expect to pay more than you would if you find one and fix it yourself. Some of us love the old cheap Japanese deluxe machines. The new machines ALL have plastic parts and stamped metal no matter how much you pay. Look at all the pictures on here - there are tons of older machines well loved by QB members.

I have a Brother SE 400 and it embroiders and has all the things you are asking for. I love this machine.
It costs less than $400. I bought mine at Wal-Mart.

I have both--everything from a very high end Janome to a 1907 Singer treadle. I love them all. If I was interested in fancy stitches and embroidery, I would look for a computerized machine. If I wanted a work horse, I would definitely go with a vintage Singer. I have quite a few and each one is set up for a different task. I use my 15-91 for free-motion. I use my featherweight, my 27 treadle or my 66 treadle for piecing and repairs. I use one of my Janomes for buttonholes, decorative stitching or machine embroidery. I have several Japanese made 15 clones that are workhorses. What you get should be dependent on your needs, wants and budget. Just decide what you want it to do and go from there.