jmx, you don't need a grinder to make knives, you can do it all with files and sandpaper. With that being said, I recommend you do a search here for "grinder" and see what you come up with. There are many threads extolling the virtues of lots of machines, whose prices range from $200 to $2000... One thing to remember is that there will always be a grinder that seems just a little better than what you're using. I have a 1.5hp variable speed, and keep thinking I should've jumped for the 2hp. That's how it goes.
A band saw is not necessary. You can cut major profiles with a hack saw or simply grind the whole profile out -- that's how I used to do it. But I sure appreciate my cheepie HF bandsaw!
Dremel tools are useful for sculpting and filework, wouldn't live without mine.
Good luck making knives! Once you've done it you won't want to quit.
Dave