Def. recommend to shop around, I loved some of the furniture out there, however that's how they rack you, they think because 'it's your first' you'll spend the do-re-mi. I have two children that have used the same crib, and it's a $200 model from Toys R Us. It does convert to a full size bed, but we have never used it for that. Right now it's in storage, waiting to see if baby #3 comes along!
Another thing, is PLEASE don't get caught up in the $100+++ crib bedding out there. The whole 'theme' of the room is overrated in my opinion. Right now, there are far better things to spend your money on for baby, than an overpriced bedding set that happens to have John Lennon sketches on it, or cutsie little butterflies. Not saying it shouldn't be pretty or cute, I'm just saying don't put too much emotion into that part of it, it's not worth breaking the bank or charging up the credit cards. And believe me, they will never remember what they slept on the first year or two anyway.
I am a firm believer and lover of the children's resale shops Once Upon A Child. Google that name and see if there are any in your area. They are very reputible, and only stock the best, cleanest items. They buy from moms, gently used EVERYTHING....cribs, changing tables, bassinets, pack & plays, bottles (sterilized by them of course), clothing, blankets, crib bedding, I could go on and on. Even if you need to drive an hour or two (my closest ones are 2 hrs away, I go and make a day of it, visiting all of them in the area) it's worth it. You'll be pleasantly surprised.
Babies especially don't outgrow or out-use much of anything, so why pay full price? The shop buys from moms and resells to moms, helping everyone. And when you're done with it all, pack it up and sell it back to them for another wonderful new mother to use! I've always got fair prices and beats a garage sale any day. Best of luck to you and your family!