Here's another vote for the Coote belt grinder
I've got one in 2X72 with a 10" wheel. Set it up with a 1.5 horse dayton high torque TEFC motor, and 3 speed step pulleys. I welded up my own motor mount that is hinged so that I only have to lift up the motor to change speeds, no tension adjustment or anything. Came in between $700 and $750 (can't remember exactly, try to forget how much money I've sunk into this stuff

)to cover the grinder and all my materials and hardware for making a mount and wiring it up.
I've used it for hollow, flat, and convex grinding now. It works best for hollow grinding at the height I have it mounted at, but it could be lowerd a couple inches and be very comfortable as a dedicated flat grinding machine also. Just a very nice grinder all around, and very good value.
If I had the money I'd buy a KMG, but tuition keeps going higher and eating away my budget for toys :grumpy:

This is a great grinder for someone looking to get started with serious knifemaking equipment, and should serve them well forever though.
I tried using a 4X36 and still use it for handle work, but I hated it for grinding blades. I eventually went to an 8" bench grinder, then 2- 8" bench grinders to have multiple grits. I used them for almost 4 years and made a lot of knives on them. The quality and speed of my work, increased drastically in a very short period of time after starting in on the coote. I would not want to go back to anything less than a full blown 2X72 grinder now. Buy the best you can afford. If you want knifemaking to be anything more than a hobby you really need to have a full sized grinder.
I also agree with a 1.5hp motor. I know you can get by with a lot less, but its nice to have the muscle there when you need it. The price difference from a 1hp to 1.5hp is pretty small when you look at the total cost of the machine. I'd also recommend that you pick a capacitor start, continuous duty TEFC motor, with a high service factor. There are times when I'll run the grinder for hours at a time. Sometimes I really lean on it. The 1.5 horse motor I have, doesn't bog down, and runs smooth and cool. A smaller motor might run under that load, but its going to be straining and run hot. It definitely won't last as long.