OBD-II code reader

Educate me on OBD-II code readers. I have heard that there are two levels of readers, one level will only read codes, and the better machines can be
used to reset codes and do other programming. Is that true? Is there a recommended reader that will do the more advanced reading? I am looking for the home mechanic and don't want to spend the big bucks. But I am willing to spend enough to get the right tool.
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My take on the terminology : Code readers only read and reset the light. Code scanners will read the code, turn off the light, but also display real time readings of sensors (great for o2 sensor graphing), freeze frame readings (all the sensor readings at the time the code was set) and pending codes (some codes need to happen a number of times before a light is set). Readers are dirt cheap. ($30) Scanners are more pricy and better if you get a software program to run on your laptop (PDA) ($150) Neither will allow any alteration to the PCM program. To alter the PCM (tuning) and do scanning you need a program like hptuners. ($500)

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I really like my Actron CP9135.
http://www.actron.com/product_detail.php?pid 151
Rusted wrote:

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Harbor Freight has a decent cheapie, on sale now for $39.95. You can get the owner's manual from their site in PDF format. It reads the codes out three then erases them if you don't disconnect it first.
The Auto X-Ray is a very good unit. Available at Checker, Auto Zone and other places.
Al

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