$200? You can get SPD pedals for less than $50 online. Shoes might cost a few bucks, but they don't have to cost any more than any other type of athletic shoe. I use 2 sided pedals, but if you think you might ride with regular shoes sometimes, get a set of SPD with platforms on the other side.

Here is a pair of 2 sided pedals for less than $30.Shimano PD-M530 Trail Mountain Pedals

And here is a set of 1 sided pedals with platform on the other side for $42http://www.nashbar.com/bikes/Product_10053_10052_502000_-1___204720

I currently use the M540 dual sided, and they work very well. Before that, I used the M324, and they also worked very well. Even the Wellgo SPD knockoffs I used 8 years ago still work and are currently on my mountain bike.