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If you want to go for Dwarves then I suggest starting with a few blisters of Khazad Guard, and 2 or 3 boxes of Dwarf Warriors of Rangers, as well as Gimli, and Balin, as well as the Commanders box set. So from the contents of the commanders box set, 2 boxes of Dwarf Warriors, a box of Dwarf Rangers, and Gimli you could get something like this:
Gimli
12 Dwarf Warriors, 4 with Shields, 4 with Dwarf Bows, 3 with Two-Handed Weapons, and 1 with Banner
Dwarf Captain with Shield
12 Dwarf Warriors, 4 with Shields, 4 with Dwarf Bows, 3 with Two-Handed Weapons, and 1 with War Horn
Dwarf Shieldbearer
12 Dwarf Rangers, 4 with Throwing axes, 4 with Two-Handed Weapons and 4 with Dwarf Longbows
Which would come to 586 points, giving you plenty of models for a lower points game, and provided a decent core for larger armies which doesn't cost too much.
EDIT: Highlordell and Knighty both make very good points
EDIT 2: The army I use at 600 points is something like this:
Gimli & Balin, each with 6 Khazad Guard, 5 Dwarf Warriors with Shields, 1 Dwarf Warriors with Banner, and Dwarf Captain with Shield with 9 Dwarf Warriors with Bows.
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C.A.P.T.A.I.N. = Crazy And Proud To Admit It Now
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