Hi there!
I LOVE my Schwinn Airdyne because it provides an upperbody workout too! I know they aren't cheap (we bought mine new for $649) but they CAN be found used in your price range and there are some that perform like the Airdyne in your price range too. When you want to rest your knees you can pump with your arms - also, the spinning fan wheel provides a nice Breeze, which is also nice!
Check it out at:
http://www.schwinnfitness.com/schwin...rcise+Bike.jsp