Since we are talking about inexpensive knives, I picked up one of the Swedish Military Moras from Sportsmans Guide. Heck, it was only $9, so I figured it was hard to go wrong.
Swedish Mil. Mora Knife For the price, I have been extremely impressed with this knife. Typical carbon steel blade that's easy to sharpen and holds a good edge. It has a plastic/rubber grip that is easier to hold onto than the wooden versions. The sheath is plastic, and the little belt clip isn't the sturdiest looking thing in the world, but it retains the knife well and is quite functional.
For the record I am typically a knife snob, and own several knives that I spent > $200 on. If you are looking for an inexpensive knife to throw in a pack or give to your kids, this is a good choice.
Greg