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Biggest cause of "warped" rotors is over-torquing the wheels. Another problem is mating surface of the hub to the rotor. If it's not clean, it can cause problems. The other is material transfer due to excessive heat.
Cheap rotors tend to be effected by the first two because manufacturers take more and more metal out of the hat area, which in turn becomes weaker and more susceptible to over-torque of the wheels.
Buy good rotors, good set of pads, new hardware, you should be fine. If you want to upgrade, start with braided steel line to improve some pedal feel.
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2/20/2013: They Day the ****s Stopped
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