Do I need to spend over 20bucks for an Arkansas Stone? I have seen them for 7.99 on a certain auction site,will this work? Or does it need to be a high quality stone?

Buy once, buy right. You get what you pay for. Mine is 30yrs. old.

I never had a good stone till I got grown and later in life than I'd like to admit. Since I make custom knives it kind of goes with the territory to have not only good ones but large ones. That means they cost more. But it does pay off. I like a family owned company in Pearcy, Arkansas (not sponsors). They sometimes have specials so don't be afraid to ask them if you get in touch with em.

Main thing is this, get two sizes of grit or, at least, get the main one that you are likely to use. If I had to get one it would be "medium/soft". When I get a burr from that, I can strop it and boy it cuts well.

I have had good luck sharpening knives with Arkansas stones. I have a medium and a hard one that came together in a kit many years ago. Unfortunately, I was never any good at sharpening broad heads with a stone, so I have a diamond kit specifically designed for broad heads that gives good results.

I've had some good Arkansas stones; med soft and both black and white hard stones. Unfortunately, all were on the small side.

Like Lin said, for knives you really want large ones. They will last your lifetime, so I would follow Lin's advice and don't even mess around with the little tiny ones. I finally got a good one and keep it in a plastic dish with a dilute solution of Simple Green so it stays wet. Definitely nice to work with.

Your post prompted me to go look at that site. After four pages I sure didn't see any great deals. I did see a few 8" and 10" stones that weren't bad but nothing for $7.99 that I'd consider getting.
Stay away from used stones that may be dished in the middle or clogged with grit from improper use and cleaning.
All in all, I'd go with Lin's suggestion for larger stones and check with his supplier.

Guy