Where to draw the line when purchasing?

Okay so I'm looking for my first horse. I'm an intermediate rider and I'm looking for a horse for pleasure; hacking out, light jumping, basic dressage, and maybe a show or two a year. A good temperment, soundness, and saneness are very important to me. There are so many things to consider when buying such as age, conformation, training, ect so I am wondering where do you draw the line on what is acceptable and what isn't? I have a certain budget and I don't require a horse which can bring me to the Olympics nor do I have the money or training to buy me one which would.... so which characteristics do I focus on?
Conformation confuses me a lot because you can have a well conformed horse which moves terribly and then you can have a poorly put together horse that moves decently. Also no horse is perfectly put together, so how do you decide which conformation faults are okay?
Any suggestions on what to focus on?

In my opinion, that is a personal decision. I would suggest taking a knowledgable person with you who knows you well, as well as your skills and can make an objective assessment of the horse and how it will fit you.

That said, you have to take a hard look at the horse. I have come to the conclusion over the years that they (and we) all have flaws. The process of choosing a new horse to me has come to mean knowing what that horses flaws are and whether or not those flaws are something I am willing and able to deal with. WE all have different priorities, and only you can decide what fits best with you.

Franknbeans has said it all, but I HIGHLY second bringing another experienced set of eyes with. Make sure you feel a connection to this horse.

First off I would say educate yourself about conformation. Generally in my experience, horses that have correct conformation move well and will stay sound. That is the entire purpose OF correct conformation. It's not about what we find pleasing to the eye but rather what will keep the horses sound and useful throughout their lifetimes. Additionally horse conformation is all the same across the breeds IMO I look for good conformation first, breed type second. IF you select a well put together animal you can be reasonably sure that he will remain sound.
Next I look at pedigree. I'm looking for horses in the near pedigree (immediate= mother father grandparents and great grandparents) that have excelled in whatever sport I want to do with the horse AND have successfully competed several levels above whatever I think I may eventually require from the horse. That way you will most likely never outgrow him and be again in the market.
Then once a prospect has met those requirements I look at the horses individual personality and current level of training. Be honest with yourself is this a horse that you would enjoy riding from day one? If not pass him up. There is a LOT of really good horseflesh out there ava to be bought for a song. Now is a great time to be looking for something to buy.