Reddit reviews Cut Away - Machine Embroidery Stabilizer Backing 100 Precut Sheets- Medium Weight 2.5oz. - 8"x8" - Fits 4x4 Hoops
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High Quality Medium Weight 2.5oz Cut AwaySoft and Stable Multi Purpose Machine Embroidery Stabilizer100 8"x8" precut sheetsfits 4x4 embroidery hoops
I've actually made starter kit recommendations for folks before. For years I used a Brother SE 400 which is available new on amazon for less than $300:
https://www.amazon.com/Brother-SE400-Combination-Computerized-Embroidery/dp/B003AVMZA4/ref=sr_1_1?ie=UTF8&qid=1487700696&sr=8-1&keywords=brother+se400
it will even dip below that once in a while - i've seen it for as low as $279 before!
The drawbacks to this machine are:
you cannot go back and fix a thing if something goes wrong. do not put anything you love in this machine. (i've had my viking eat things too, so maybe that's a good rule for all home/hobby embroidery machines...)
The size limit is 4x4, it cannot take any larger hoops
DST is not an issue because there are many free programs that will convert them. I like wilcom truesizer: https://www.wilcom.com/en-us/products/truesizerproducts.aspx
The brother takes PES files.
For threads at home, Amazon also has big thread packs that cost less than a dollar per spool:
40 spools: https://www.amazon.com/Polyester-Embroidery-Beautiful-Babylock-Husqvarna/dp/B0035DBUPS/ref=sr_1_5?s=arts-crafts&ie=UTF8&qid=1487700876&sr=1-5&keywords=embroidery+thread
63 spools: https://www.amazon.com/Brother-Colors-Embroidery-Machine-Thread/dp/B005GYJZMY/ref=sr_1_8?s=arts-crafts&ie=UTF8&qid=1487700876&sr=1-8&keywords=embroidery+thread
260 spools: https://www.amazon.com/Embroidex-Polyester-Spools-Embroidery-Machine/dp/B003ZSD5EC/ref=sr_1_19?s=arts-crafts&ie=UTF8&qid=1487700876&sr=1-19&keywords=embroidery+thread (i have this one, it's the best deal and you get so many colors!)
I also buy these pre-wound bobbins for it because embroidery sure eats these up: https://www.amazon.com/gp/product/B004JJSX1Q/ref=oh_aui_search_detailpage?ie=UTF8&psc=1
And finally, i like the pre-cut cutaway stabilizer: https://www.amazon.com/gp/product/B005NX5OQ4/ref=oh_aui_search_detailpage?ie=UTF8&psc=1
Hope that helps! It's a nice little machine and doubles as a regular sewing machine with a few fun stitches.