I smoke this similar to the way I smoke briskets with respect to temperature and time. I suggest the Boston Butt/Shoulder Blade Roast over the Picnic Ham. Amazingribs recommends the bone-in version since it holds the roast together better.
I have a friend who uses a Masertbuilt electric and really likes it. And they're only $130 or so and the regulate the heat...hard to beat....i'm a little sentimental with charcoal, so i keep using the kettle
You can build an Ugly Drum Smoker (UDS) for a couple hundred if you can find a use 55 gal drum for cheap. Here's a link to a kit and here's a link to DIY instructions (and you'll have to buy all the parts individually). Otherwise a Weber kettle, like I use, with the fuse method for burning charcoal will work (keeping in mind that I also use a temp regulator). Some people have made them out of old filing cabinets.
The plain vanilla one is $150. If you get that one, then you'll want to build a side table or get a cart. I have the performer with the side table and it helps to have that space. I don't know that it worth another $250 (I don't think I paid that much for mine, but it's been a few years). You can get a tool cart from harbor freight for $30 on sale or one with a drawer for $70. Incidentally, just because I use a weber kettle doesn't mean that I recommend it; the kettle is simply what I have at the moment and what I work with. If you want ot smoke on a budget, then I would suggest buying a cheap, used grill, using offset heat, and using a temperature regulator.
As far as offset smokers go, they seem popular with various people, but they are not recommended by the experts (at least not the cheap one). Check out this thread for more info. And here is a rating/review from amazingribs.com.