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I think one of the best bargains out there is the Ryobi Corner Cat. I've owned one since 2003 and I've used it a lot and it is probably one of my favorite sanders and it does a great job. I've also managed to knock it off the bench a few times, fell off the ladder, etc. Other than a few scrapes on the soft coating the thing just "keeps on ticking".
It's $30 at Home Depot, takes both the Norton sanding papers and those designed for the Black and Decker. I like the Norton as the nose piece is triangular and perforated so when you wear the tip, you can just pull off the velcroed piece and rotate it for a fresher tip.
The CornerCat has a two-year warranty and a 30-day Satisfaction guarantee.