We have two beagles and used to have a pug, so we are quite familiar with battling the dog hair (the beagles are tri-color, so hair shows up on EVERYTHING!). We've had a Eureka Smart Boss for almost 5 years, and it is hands-down the best vacuum I've ever owned. The suction on that thing is amazing, and the attachments are convenient and work great for doing furniture and stairs. It was under $200 at Best Buy when we bought it. We looked into getting a Dyson at the time, but the consumer reports we looked at ranked this vac higher, and since my husband was out of work, we went with the more economical choice. I think we made the right one!
I would also recommend trying GNC shedding formula (we get it at PetSmart). It's a supplement in chewable pill form. The dogs love it, and we have definitely noticed a reduction in the amount of shedding. You should check with your vet first, but that might help you out some too.