I was thinking of going for a moving table as like you say it will give more bang for buck and the design should end up simpler which is what we are aiming for.

Spindle - will probably go with a dremel to start with as I happen to have a couple kicking around and they should suit what we will be cutting, there are plenty of dremel's on ebay and also copies for not a lot of money so it makes sense to go down that road. I will design it with the option to put something meatier on there but I really don't think it will be suitable for an entry level type machine but then again you never know!

Just checked out those stepper drivers and they don't look too bad, especially for £8.99. Has anyone ever had a go with one of these before?