While some people badmouth them (mostly people who knew someone who knew someone who knew someone...who owned one, but usually not someone who actually owned/owns one) I have been very happy with my Charles Daly. It has many thousands of rounds (over 6K now) and I'd still say it has been a good gun. The original mags are POC so you will want to change them out, but after that it should be a good gun. Mine does occasionally fail to go into battery initially (a stronger spring would probably fix that) but once it is initially placed into battery it never fails to go back into battery while shooting (thus, it isn't anything that would scare me from using mine for defense). A set of decent mags (mine are Chip McCormick Power mags) and a heavy recoil spring should be enough to stop the most common problems.
Mine is generally quite reliable and it is accurate. Compared to the Kimber Custom Target II (stainless) that my best friend bought (going on a year ago) it is a little sloppy (it isn't nearly as tight as the Kimber, obviously when you about double the price you get something for that). However, in the time period he's had his Kimber my Daly has had fewer hiccups than his Kimber has (not that I'd say the Kimber is unreliable, on the contrary it is a perfectly good gun, it just has had a few hiccups over a couple thousand rounds). Also, both my best friend and myself are more accurate with my Daly than his Kimber (not sure why, I'd expect the Kimber to be more accuate, and maybe with more time with it we will be more accurate with it).
If you do get one, and if you go used, be sure it has the letters "CD" proceeding the serial number. The reason Charles Daly 1911s have a bad rep is because they used to be fairly bad. However, several years ago they improved them and put the CD before the serial number. About 2 years ago they improved their quality control and upgraded some of the parts and put it out as the "enhanced" model. I have the post-improvement, but pre-enhanced model.
Anyway, I have been completely happy with it and I would be more than willing to buy another. In fact, I do plan to eventually get the 3" version at some point.
Another option is the Rock Island Armory. It is more or less a military spec 1911. It is made by Armscor in the Philipines as is the Daly, in fact I'm pretty sure it is made in the same factory. For some reason though, people who badmouth the Daly (again, usually despite never having owned one) like the RIA.
I'd love to get one of these, but they have been discontinued and they are disappearing fast (but if you can find one it should be a good choice).
A third good choice is the Springfield Armory Mil-spec. Around here they go for over $500 (usually around $550) but guns are way overpriced in MD. Most everywhere else they seem to usually go for around $450 (based on reports here and other forums).