I always considered myself as "thrifty!" Cheap end scopes have cost me twice! I am not saying that you need a 500+ scope, and I still think that once you get past the 300-500 dollar range you start reaching a point of deminishing returns!
But having been burnt twice (one Tasco & one Simmons) I'd say get the best that you can afford and/or live with!!!!!
If you can accept a worse-than-average scope failure rate on a hunt, then cheap is OK.
When I consider having to re-buy a cheap scope twice, figure in the total costs of hunting (equipment, leases, travel, not to mention scouting, stand clearing, and other work) and don't forget, possible lost opportunity at a lifetime animal, a little more spent on a better scope could just be a bargain!

I just picked up a Nikon Pro Staff today, 2x7x32 $129 at my local sporting goods store. Cabelas has the same price. That thing is crystal clear.

http://www.samplelist.com/default.asp?prod_type=1&hide_sold=False

Goto www.samplelist.com and click on rifle scopes if linky no worky.

They have some Prostaffs slightly used/new and/or refurbed for about 99$. This site is from SWFA.com which if you do a search here you'll see nothing but good comments about them.

Theres also a slightly used Bushnell Trophy scopre 3-9x40 for 50$ just click link and scroll down thru. Some pretty good deals on on there.

Check out the Burris Fullfield II2x7x35mm even can get the German3 post recticle, cost around $175. Bushnell Trophy and Legend scopes, Nikon prostaff and Buckmasters are very good. Sightron S1 and S2 are great!

Ok, I have had a cheap tasco that failed miserably. The crosshairs kept moving. I had a simmons that wasnt bad (about 55 bucks) but the eye relief was way to close, I got hit in the eye a few times. I currently have a simmons 8 point (came with my winchester mod 70) and the eye relief is bad, like 2 inches. As well I have a bushnell sportsmen on my 243. The eye relief is OK but it is a 3-9X32 so the ocular aquisition real narrow beyond 5X. On my 30-06 remington 700 I have a nikon prostaff 3-9X40, it is the best scope I have. Great eye relief, clear as a bell, bright as can be when it gets dark. My pal uses vari-X scopes and even he says the difference is minimal. I am a hunter, not a competition target shooter. If you doing the latter then tons of money is required. I am saving for another prostaff for my 7mm WSM winchester, it will have the Ballitic plex. EJ

You may want to check out Maine Vue Optics. They are relatively new and seem to be a real "sleeper" company. They're selling them everywhere here in Maine. I've had a 3-12x50AO for the past two seasons and I like it better than the Leupold VXI I used to have, for about the same price. I found a couple online reviews about them.
http://www.skylineadventures.ca/Maine_Vue_Optics_Riflescopes.html
http://www.mainehuntingtoday.com/magazine/becraft/mvo3x9x40.html
I think they're 3-9x40 sells for around $110 and I know guys that have them on .50 cal muzzleloaders, 7mm mags, and 45-70's. You can check out their site at www.mvoptics.com

I have a Simmons 3x9x50 on my 30-06 and after shooting1.5 boxes, the crosshairs and the target went blurry. Really PISSED about that!