Look at Panasonic canisters.  (I do believe they are/were making some Kenmores as well)  A couple of years ago, a buddy of mine was looking for a Christmas present for his daughter and didn't want to spend much on a canister either.  ($200-$300).  We searched around and bought the Panasonic at Future shop in Canada.  I talked them into using a HEPA bag, (a little more expensive than a regular bags, but well worth it).  In Canada, these units go on sale quite frequently. When we looked at other canisters in your price range, Panasonic seemed to leave the competition in the dust.
 
Vernon

Well I went to Sears today and saw their line of Canister vacuums.  The salesperson was telling me that 3 of their models received the consumer reports best buy awards for first, second and third place.
 
This one the salesperson told me was rated 2nd in consumer reports this year and was trying to sell me this one:  
http://www.sears.com/sr/javasr/product.do?cat=Vacuum+Cleaners+%26+Floor+Care&pid=02025512000&vertical=HSWR&subcat=Canister+Vacuums&BV_UseBVCookie=Yes
 
What do you think of the above vacuum compared to others like panasonics?

SEARS sells 25 percent of all the new canisters sold every year.  Why?  Decent prices, nice features and good performance.  While rated a BEST BUY, the canister model 25512 and 25513 was dinged for carpet performance, noise and suction with attachments.  Still a decent vacuum buy for the money.  And, if I recall, on sale this week at SEARS.
 
I don't like the repair and parts reliability and availability of SEARS vacuums.  Parts and repairs, especially from and by SEARS, are very, very expensive.  
 
Another CR BEST BUY canister consistently rated comparable to SEARS is the Wal*Mart GE (Eureka) canister.  Price is $150.  You may want to test this against the SEARS model.  This vacuum is made by the same company that makes the Electrolux-Eureka Oxygen Ultra canister which is rated the number ONE canister by CR in October 2006 over the SEARS.  
 
Consumer Reports is a guide not the gospel.  The best advice and opinions for vacuums come from the industry experts who own and operate the independent vacuum cleaner stores around the country.  
 
Carmine D.

Hi tiger21,
 
Who's making what -- I don't know.  However, as far as Panasonic and Kenmore canisters go there is nothing surprising or all that new happening save for the recent lending of the Kenmore name to LG.  Quoting myself, "the same animal" means means a good part of the design for fittings, structure, etc., remains the same or very similar.  Personally, I liked it better when Panasonic had its own definitive line of canisters -- which performed quite well by the way.  What they felt was to be gained by hanging on to an old design, ala the Oreck Dutch Tech scenario, I'll never know.  I always felt originality counts if only to stimulate the market.  Nonetheless, the design works and both brands of canister can hold their own.
 
Kenmore. for the time being, still sets itself a little apart from other brands by way of flights of fancy and design you won't see elsewhere. And somehow it still carries the whole thing off by providing good performace.  This vacuum maker has always done this though its doubtful that line of thought will prove affordable to a board of directors somewhere in future.
 
Per Carmine's mention re expense of repair, I have to agree.  Yet, it's the way of the world -- if they don't get you coming in, they do their darnedest to get you on the way out.
 
Venson

Quote from tiger21 on 12/18/06 at 11:30pm:

 
Sears has recently signed a contract w/ TTI that will be in effect until 2010, but it will most likely take time for us to see TTI vacs w/ "Kenmore" on it.