Even if you just buy a cheapie $15 grinder you will notice a difference. It only take an extra minute to grind your own beans for a pot. Plus the whole beans will keep better/fresher than pre-ground coffee.
I no longer buy store brand coffees. We have a local coffee shop that does a very nice job of two stage roasting where the husk is manually removed, and then the coffee beans can be roasted at a much lower temperature. The result is a coffee that does not have a burnt/bitter taste. It costs more ($14/lb and up) than your $8/lb store coffee but is worth it to me.
I also use filtered water.
As far as brewing goes. If you do the above you will notice an improvement no matter what...even for auto drip machines. If you like expresso then I think one of these inexpensive Italian coffee pot does a fine job
A french press is another inexpensive and great way to brew your coffee
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