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If you really like an LCD e-reader, you should spend the extra $150 or so and get the Nook color if you can. I know it's basically twice the price, but the difference between a decent processor/GPU/amount of RAM with a capacitive IPS LCD, and a resistive cheaper LCD....big difference.
It's really the best LCD e-reader at this point by a wide margin, and probably the best bang/buck Android tablet on the market right now, if you root it.
I know about having a budget, though. It sounds like the Pandigital Novel can be a bit better if you're on a tight budget.
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