Just pay the overinflated prices on ebay for the Microsoft wheel, they are certainly not the best built things in the world but they are great otherwise and I recon Ive had the value out of the two that Ive been through so far with the problems being a complete failure of something electrical taking the first one and the up-shift paddle meaning the second one needed some heavy repairs to sort the problem. I managed to pick up a spare a month or so ago at a branch of gamestation for £65, second hand yes but in pretty much brand new condition so its worth looking around.
BTW, if you go for the cheap pedals you will only have to spend an extra £50 to get brand new Fanatec kit or do without the pedals and be in budget. Second hand fanatecs seem to come in in your price range though. One other point to consider with these wheels though is that the full 900degree rotation isnt compatible with Forza so you will only use a bit of the lock available to you.
Dont go for the cheapo Mad catz wheels as they really dont last well and my friend who has one says the feel is nowhere near the same!
