The best "Bang for the Buck" in the simulator world is ClearView:

http://www.rcflightsim.com/

The graphics are good, but the flying physics are really, really good.

You can download ClearView and try it in demo mode for 15 minutes of actual playing time. You can also playback the two pre-recorded demo loops indefinitely to make sure the simulator runs well on your PC.

If you decide to buy it, ClearView costs $39.99 to register and you can upgrade the demo version automatically through online payment.

I normally fly Real Flight G5 and ClearView with my Interlink controller from my original Real Flight G3 purchase. I have used the ESky EK2-0905A USB simulator controller:

http://www.raidentech.com/e4chflsitrki.html

I bought mine through http://www.raidentech.com and flew it with both FMS and ClearView. It takes a little bit of effort to calibrate the ESky controller first through the Windows Game Controller control panel and then through each individual simulator's calibration routine. Once the calibration routines were finished, the controller felt just as accurate as my Interlink controller or an actual transmitter.

$60 will get you a good simulator, a weak simulator (FMS), and a good USB controller to use with both. You could also consider EasyFly 3 or Real Flight Basic, but they commonly sell for almost twice as much at $99.98 to $129.99. These are both available at http://www.towerhobbies.com.

Tower also carries a pretty cool little bundle for something called EasyFly 3 SE:

http://www3.towerhobbies.com/cgi-bin...?&I=LXXUS9&P=0

For $29.99, you get a USB gamepad controller for your PC and a limited version of EasyFly 3 (which is itself a limited version of Aerofly Professional Deluxe). This new bundle is only $10 more than the ESky controller and FMS. I feel pretty safe in guessing that the graphics and physics are worth the extra $10 on EasyFly 3 SE.

Good luck and good shopping!