Princess - lavender oil or tea tree might help that clear up. They're also great diluted in a base oil (anything will do - olive oil, sweet almond, grapeseed...) and massaged on your feet. Anti-fungal, antibacterial and will make you less likely to blister in future!
My running shoes are almost exactly 1 year old so about to buy some more. If you are near a designer/retail outlet, you can often get £100 running shoes for half that! But first time out, you might be best going to a specialist shop for advice.
There's also some great advice on choosing shoes according to your feet/style of running, here:
www.girlsruntoo.co.uk
Anything but proper running shoes just won't hack it and the danger's not just to yer feet but your knee joints, etc! I got some Nike Air Vapors for under £50 and they have suited me great but we're all so different, try on loads and you'll be amazed at the difference when you run!