Well, there's an online Hebrew dictionary with nikkud at milon.morfix.co.il
The Babylon dictionary are milon.co.il
doesn't have nikkud.
As far as cheap paperbound dictionaries that are great for modern Hebrew, I would suggest the Oxford Dictionary: English-Hebrew/Hebrew-English (Hebrew Edition)
. It's what I use in ulpan and enjoy it completely.
Ιf you're asking specifically about Biblical Hebrew, I find the Langenscheidt dictionary
very useful (because it's so small). It's definitely not a standard reference dictionary, but it's very user-friendly when you get used to it.
ג'ייסון / ΙΗΣΩΝ