Best paladin weapon for around 200-300pp?

[kaev]

Green Jade Broadsword is decent, reasonable choice that gives you a little hp besides, and it's very common by now so quite cheap. Use it to skill 1hs & bash, and also when fighting casters.

Baton of Faith is a helluva deal anytime you want best damage you can manage (when you're stuck solo or are not fighting casters or are not MT.)

For the future, between Kunark being so old and Paladins being unpopular here, Sword of the Morning is a very good deal, can be had for under 1000pp if you're not in a big rush to buy. It doesn't proc until L50, but that 16/27 ratio is very nice at any level.

If you want to keep your 2hs skill up, use something cheap and fast like the Nathsar Greatsword and just keep it bagged except when skilling.

[edit]
If you plan to be rich someday well before you get your epic, the Rod of Faith is the best droppable Paladin 1hander (24/32 1hb iirc.) Something fast and cheap like a Mudman Enforcer (if you see one around) is an ok way to skill-up 1hb before you get rich.
[/edit]

[Estolcles]

At 1000pp, you should definitely go Ghoulbane. Great attack/delay ratio, plus the undead killer spell. AND it's needed for your Epic.

[White Ranger]

Sword of skyfire is great up to lvl 20. Then you can get sword of mourning or ghoulbane for fairly cheap

[kaev]

Ghoulbane has a nice anti-undead proc, but its ratio is much inferior to the Sword of the Morning. With an uninspiring (100-ish) DEX it'll be roughly equivalent to the SotM vs. undead, against non-undead foes it isn't even close.

It is necessary for the epic tho, and if you get one at a good level for Unrest (when the damage from the proc is a pretty decent chunk of a mob's hp) it can be a lot of fun to use.