Like others have said, your biggest problem right now is the grinder. A blade grinder makes boulders and dust. There is no way to get good even extraction from that. There are decent hand grinders from Timemore and Kingrinder starting at $50+ and decent electric grinders from Baratza and Fellow from around $150. These would cover all of the non-espresso grinding needs. Espresso grinding will cost you a little more.
As far as good budget espresso machines go, Lance Hedrick posted this as the new budget choice:
Blade grinders make boulders and dust. Save it for chopping herbs or something. Get a Timemore or Kingrinder hand grinder for just over $50 on Amazon. They aren't the best but they are far better than what you have.
A good grinder is arguably the most important piece of gear in your coffee making set up.