At last a post I can answer with conviction!!
I just tinker at woodwork cos I like it and everyone else on here seems so knowledgeable.
Welders: To start with for that budget - go with clarke. New will get you a half decent machine for that money and used mid range. Clarke a good range of hobby welders, I even have at home (like I don't weld enough at work....). If you use machinemart to buy it and your'e not in a rush, you can wait for a VAT free weekend deal and get 20% off them.
Used: always figure on new wire (don't buy cheap, you will regret it...) and a new wire liner and tips. If you will only use it occasionally, buy some tip dip too to keep the tip in decent nick between uses.
Gas arguments: Proper shield mix is preferable, will giver cleaner welds with less spatter and fewer micro inclusions, but CO2 will do for hobby stuff, not like you'll be welding the boiler on a nuclear reactor (I hope?!) as a first project. Can work out expensive on smaller bottles, I personally would go for a larger CO2 pub bottle for home work, but with the comments above noted.
Also, though get 0.8 wire and tips for hobby amp levels, should hit a happy medium with it.
And remember, the light at the end of the tunnel is almost always arc eye, so get a proper mask.