There are places that do plain old powdercoating who might be less expensive - check the yellow pages. Another possibility would be to go to a few autobody shops and ask how much it would cost to have it sprayed, or go low buck with a bunch of rattle cans.
Velocolour? Well, only if you wanna pay 350+ for frame and fork. I don't know about you guys, but I think that's a bit steep! I bought a brand new touring frame from Urbane Cycle for that. I recommend powder coating instead, if you just wanna get a good no-fuss and economic paint job done. There are a few around and a full sandblast/prep/paint can be had for under $100. Just don't use Amara powder coating - they didn't stick with their quoted prices (always get a written quote!!), and left some old paint in the gun, so now I have a black-and-red flecked bike! Still, it only cost me $60, and it looks pretty cool.
Velocolour is for paint jobs and nice ones at that. For sandblasting and powdercoating go to Byers Bush in Mississauga. Remove all parts from frame and fork (including BB and headset). Call ahead as their hours are limited. It's about $150 depending on what colour you choose, might be more with the fenders and chainguard.