If you have a local dealer you can go test a few different brands they can demonstrate the features, they may even have some floor models with discounted prices.
Since you are both new to sewing many dealers offer lessons. Buy the best you can afford get the most value for each dollar you spend.

Somewhere you can get lessons is a great thing. You don't need to spend an arm and a leg on a machine either.
Kathy G in MI

I agree that buying from a good dealer that can provide lessons would be the best option. Most local dealers also have trade-in policies that give you 100% of the cost of your machine towards an upgraded model for anywhere from 60 days to one year, if you find yourself getting more into sewing than you originally thought ;-) Ask up front and get the store's policy in writing if you go that route.

Another option, especially if you don't have any dealers close by, is one of the Kenmore machines at Sears, which are made by Janome. These get very good reviews from sewing instructors and other users, and provide excellent value for the money. I have included a link to a model at the top of your range that has a lot of features.

However, if your daughter plans on sewing a lot of knit fabrics, you might be better off to go with a cheaper sewing machine and budget for a serger or cover stitch machine also down the road. A cover stitch is used to make the hems you are used to seeing on t-shirts etc.

http://www.sears.com/shc/s/p_10153_12605_02019110000P?vName=Appliances&cName=Garment+Care&sName=Computerized

http://www.sears.com/shc/s/p_10153_12605_02016677000P?mv=rr

Several makers have just brought out their new models which might give you the opportunity to get a great deal on a discontinued floor model or a machine that has been traded in for the new version. Also, don't be afraid to ask for a discount, or to have some additional feet thrown in. If you are lucky enough to have several dealers within reasonable travel distance, shop around. I found a huge difference in prices from the different stores for identical machines. I was able to get a brand new Bernina from one dealer for less than I was quoted for a demo machine from another.

Your daughter is a lucky young lady and you should be able to get her a great machine well within your budget :-)

Here is a link that might be useful: Kenmore with 215 stitch functions

Please check out your local land grant college's extension office. You did not say what state you live in but in Ohio, it is the Ohio State University. They have a person in their office that helps people with questions like you have. Also, they are also involved with 4H a great organization for youth and they will help teach your daughter to sew and you also. The extension office is usually pretty in touch with businesses in your area and can give you some great advice. Go to your local library and check and see if they have copies of Sew News, Threads and other sewing magazines and research those for information on machines, sewing and so forth. I hope this helps. Enjoy the time spent with your daughter. Sewing is a skill you never outgrow and you can help save and earn money sewing. Best wishes. Rhiannon

I have several machines the latest that I purchased at a K-Mart advertising article in our local paper stating - brand new machines that were to be used at high school but they did not have the funding. Went to see what they were like and was sold on one immediately. I wish the sewing machines when I went to high school in the 60's were as nice! They are strong, durable, reliable and great price. Not complicated for beginner sewing. If you can check into something like that - not sure where but maybe this information will help.

You simply can't go wrong with a Janome or a Brother bought from a sewing shop (not a large "box" type store). I had not cared for the Brother machines UNTIL a visit to my local sewing machine store. The sales person went through some features on both the Janome and Brother machines and let me sew on each one. I finally decided on a refurbished Janome that is a dream but was really impressed with the Brother sewing machines as well. The $ range is about right for you as well.