The wife gave me a $250 budget!!!!

If there is a golfsmith near you, check out the following for $249. I'd recommend you get fitted for the clubs.
http://www.golfsmith.com/products/TL9040/Adams/Idea_Tech_A4-R_4H,_5-PW,_GW_Hybrid_Combo_Iron_Set_with_Steel_Shafts

The Adams Idea A4 tech irons are categorized as game improvement--see Golf Digest HotList 2009
Edited by uttexas - 8/2/11 at 7:11pm

Start looking at cavity back irons. If you go the ebay route you should be able to find something like Callaway X18 or X20's in that range. Look around at places like Dick's Sporting Goods for new/closeouts, a quick look at their site, they have 9 sets under $300.

Any cavity-back is going to hurt less than your blades did on mishits.  Honestly though, if you want soft feel you cant really go wrong with a forged set of Mizunos.  Something perhaps like an MX-25 or MX-200.

Just make sure they say, "grain flow forged" on them because Mizuno makes both cast and forged clubs.
 

 

 

You have a $350 budget. You should be able to get $100 for the Hogans (it may take a while)  - more if they are in good shape.

I like the callaway irons if you want something that has good feel and forgiveness.  Like cruzthepug said, x-18's or x-20's are great.  

I was just at a superstore. Buy used or demos. There's some good deals if you don't limit yourself to a particular brand or model somebody else likes. With new models hitting the shelf's the store demos are nicely priced.

 

 

you should be able to find some very good deals in the states. Try doing a 250 dollar budget in canada and it is near impossible.

see if you can find some used callaway diablo edge irons... those might be a little pricey though.
nike slingshots are relatively cheap, and they hit nice. also taylormade burner superlaunch. theyre 250. they are very forgiving

You could try assembling the clubs yourself.  You can find nice heads for $9 a piece, steel shafts for $3.50 each, grips for about $1 each, (total $14.50/club, $132, for 8, plus $3 for the ferrules+$135)., a couple of bags of ferrules for $3 each (you could skip the ferrules with steel shafts in the irons).  I got a good good deal on graphite wood shafts for $15 each, say three for $45,, leaves you $70 for a driver head and a couple of fairway woods.  You can definitely find a driver head for under $50.  You might have to push it a bit to get nice fairway heads, but you could do it, especially if you look for less expensive heads.  Hireko, Golfworks, Diamondtour and Pinstar come to mind as readily accessible sources.  Oh- you will also need grip tape, a Dremel tool or hacksaw to cut the graphite, tubing cutter or one of the above for cutting the steel, and epoxy.  You might be pushing your budget, but you would get exactly what you want, cut to your length.  You could add another $32 if you need the lie adjusted (price at Dick's or Golf Galaxy).

OOPS- $119 for eight irons