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I think an AK might fit your description:
Pre-Obama the 7.62x39 was about ~$6.00 for 20 rounds (compare AR at ~$8-9)
30 Round Capacity in converted magazine.
Legendary AK reliability..(provided the darn thing works--some companies build crap AKs [Try to avoid Century Arms, If possible])
For less than $500 there are tons of WASR AKs asking anywhere between $350-600
Only issue is 'accuracy' but you should be getting 2-3 MOA at 100 yards, good enough for most practical purposes.
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