I'd be kinda wary about the cotter pins coming loose...I don't really have any experience with these, though. I think that, when properly adjusted and set-up, they're okay, but it doesn't sound like these are. LBS...or just get new cranks.
Not going to get much cheaper than Formula hubs, and people like 'em. Wheelset's $150 on Nashbar.
http://www.nashbar.com/profile.cfm?c...u=13712&brand=