Embroidery Machine

I am considering asking for an embroidery machine for Christmas. Don't need one, but have always wanted one, so there you go...

I don't need anything really complicated, but would like one that will do monograms, personalizations and is expandable to some extent (even if that means buy additional cards, although if they have one that hooks to a computer, that would even be better). I would mostly be using it do put designs on my toddler's clothes and put his name on blankets. etc.

Some one at work was selling this one "Brother 98-Stitch Computerized Sewing & Embroidery Machine, SE270D". At first glance it looked like it would work, but since I have no idea what to look for, I was hoping some one could offer advice. I would like to stay around a machine $400 or less.

Thanks.