Here are two video workshops I did a while back on buying and setting up cheap banjos & guitars:

Cheap Thrills:
http://youtube.com/watch?v=yQOx5ptHMRY

Banjo Setup:
http://youtube.com/watch?v=yiilZ-PD1uQ

First-time banjo shoppers may also want to read this: http://tangiersound.wordpress.com/2008/11/28/a-pig-in-a-poke-or-lifes-hard-lessons/

S101 banjos from Korea and Tyler Mountain openback banjos are really nice - the trick is finding them. Old Kay, Harmony and other "catalog" banjos from the 50's through 70's can be cheap and cool - but finding one in good shape can be a chore.

I don't have anything in that range here in the office right now. We were offering some inexpensive banjo starter packages, but they were so popular we cleared out our suppliers warehouses (more about that story here).

Right now our least expensive open back is the all American made Somerset S-5 Minuteman, but at $599.00 it is a little over your budget.

In Europe, I would post a note on UK Folkies. The group is primarily in the UK, but they have members from all over Europe.

-Patrick