Check out the Hitachi M12VC. Variable speed and only $114 + tax at lowes. Comes with 1/2" and 1/4" collets.
You can read about it in the following posts:
Joe's CNC Model 2006 New Spindle Thoughts Warren's 1st CNC Router Log Spindle Choices? Another Source for Collet Bushing Adapters
HayTay