Hey John.
By my experience, once you leave the "true piece of crap" range, you'll probably be just fine with an inexpensive grinder (although the really expensive ones are nice). $100 or so for a nice Woodcraft 8" is a good investment, to be followed closely by purchasing nice wheels (does the woodcraft already have one white wheel?) and a Wolverine grinding jig.
I know a fair number of folks that swear by the Tormak but, personally, I can't see myself investing that amount of money into a grinder and jig set for use primarilly with lathe tools. Now if you're a custom woodworker and are going to be sharpening a wide range of tools to tight tollerances then we're talking a different story.
For myself, I have a $40 Sears 6" grinder, a nice blue wheel, and the Wolverine setup. The grinder, basically, sucks but is workable and was all I could afford at the time. It's on my upgrade list to get a decent 8" slow speed (slow speed primarilly because I'm kinda hamhanded at sharpening and end up losing too much metal on high speed grinders).
Finally, watch out for the dual purpose wet/dry grinder sometimes available at Woodcraft or Rockler for the $100 range. It's the one with a small white wheel and a horizontal wet stone. Seems like a cool deal but neither side of the grinder works well (I got one of those when I decided to upgrade and use it to sharpen one tool only).
Good luck,
Dietrich