I went to several local jewelry stores with the fiancee and she picked out one she liked (ended up being basically the cheapest we looked at as well). Obviously, this strategy involves popping the question pre-ring, so it's not for traditionalists. But I'd echo the idea of not spending a lot of money on an engagement ring. My wife opted for the cheap engagement ring but her family plopped down a good amount of money to make a really elegant ring for the actual wedding using stones that had belonged to her grandmother.