I have one and I love it!!! I have a Delonghi Citiz with the milk frother - we paid about $450 for it but that was nearly a year ago and we got a $50 cashback.

We buy the capsules online from the nespresso website - they are $6.80 for a pack of 10 for the regular ones and $7.80 for a pack of ten for the special ones (we buy the special ones). There are minimum order amounts of lots of 50 per order but if you order 200 capsules at a time, postage is 50% off. A normal order of 200 capsules costs us around $150 and lasts 2 - 3 months. DH also has the same coffee machine at work, so he doesn't drink it as much at home which saves a few pods I think.

I love love love my machine and the coffee is great!

ETA: Also it makes great babycinos for the kids. If you hold the button in on the milk frother, it froths the milk at a cold temp so the kids can have babycino which they LOVE!!!