I just bought a rework station, delivered for $62. But I haven't used it yet. I have used an electric skillet to do SMD work. Here are a couple of links to tutorials.http://www.reconnsworld.com/griddle_reflow2.htmlhttp://www.sparkfun.com/tutorials/59
If you search Ebay you can find rework stations cheap. The one I got is a W.E.P. 858D. Dave Jones did a review of this model on his EEVBlog. He liked it and he showed how it works on a couple of different items.
So you can go to your local hardware/housewares store and get a $20 skillet or order a $62 rework station. Or you can do both and have all your bases covered.
I used the skillet method to solder some SMD Hall Effect sensors and, after I got a decent skillet, it worked just fine. I first tried it with a real cheap and small skillet. It was barely big enough to made a toasted cheese sandwich in. But it just didn't get hot enough. But when I bought a larger skillet it worked fine.