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I wouldn't completely cheap out on rotors -- the junky ones are still quite prone to warping and hot spots. However, you definitely don't have to pay that much to get good quality rotors. I have been a long time fan of Centric blanks -- they are inexpensive, but still of very good quality. Mine regularly see both street and track conditions without a hitch.
Pads, on the other hand, is very much a you-get-what-you-pay-for type of thing. At least, this has been true in my experience.
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