when it comes to foundation, I can not handle the cheap stuff. :( I hate the cakiness, the oiliness. Bleh!! But I used both liquid and powder, sometimes just the powder. MAC Studio Fix is the greatest thing that's ever happened to me! LOL!! It's $24 but it lasts for a good amount of time and is by far the best powder foundation you will ever use. Those lazy days you don't want to fuss with foundation, Studio Fix is a freaking miracle worker! it covers so well and doesn't leave behind any powdery residue like most powders.
As far as liquid foundation, Clinique has a good one that I use called "super fit" that's a water based medium coverage foundation. It doesn't leave your face feeling cakey, and when I use the Studio Fix over it, I have like 100% coverage, it's awesome!
If you don't want to spend all the money tho, stick with neutrogena liquid foundation. But I have to be honest with you, I tried even THEIR powder and I hated it!! They're going to be your best bet with drugstore foundations. Still more expensive than other brands, but cheaper than clinique and MAC. Good luck :)