This is an extremely useful article with advice on taking up and buying a lute.
And another on buying budget instruments.
My recommended makers:
Klaus Jacobsen, 121 Listria Park, London N16 5SP, (+44 (0)20 7502 1974)
Luke Emmet, Orlando Lutes, 133 Winnock road, Colchester, CO1 2DP (++44/0 7905 075 197)
Paolo Busato, Padova, Italy
Places to buy second hand instruments:
lutes are cool!