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Fortunately I did tons of research before buying my honey's diamond (for how much it costs for a diamond, you bet I did tons of research!) So here's my favorite site to look at:
http://www.bluenile.com - good prices compared to almost any local shops, there are othe sites too, but I like this one, easy to look up the specs of the diamond you want.
And, here's my reccomendation for diamond specifications/ratings (of those "four Cs") you should look for. This is something you want done right without blowing your hard earned money needlessly, so don't half ass it by buying a really big diamond that is a piece of crap.
Cut (and polish/symmetry raitings too, which are typically listed with the "cut" rating):
no lower than "very good" for all three, "excellent" (the TOP rating, at least what is called "excellent" by a GIA certified diamond) if you don't mind paying a little more. Why? You want it to sparkle, that is what makes a diamond look nice, and the quality of the cut determines that more than anything else. If you have to choose what your money is going for, then it should be the quality of the cut.
Don't go for even more expensive "hearts on fire" or "above excellent" cuts or whatever they call it. "very good" or "excellent" is enough.
Color:
Don't bother with D,E, or F. You're paying a whole ton of money for a lack of color you need a microscope to identify. Go for G, H, or I, possibly J. G, H, and I color diamonds are much cheaper and it's impossible to see any color in them. MAYBE with an "I" color diamond you can, but I looked at some and couldn't see any. Now, I DID notice color (and by color I mean a yellow tint, that is the typical impurity color of a diamond used for jewelry) on a J diamond, but you typically won't noitce it. I would not go for a J color diamond myself, but it might be OK for you. I'd stick with G to I rating.
J diamonds are much cheaper than G to I color diamonds too, so they are good if you are on a budget, but not with a white gold or platnium ring since that yellow color becomes far more noticeable on those versus yellow gold.
Oh, avoid anything below a J like the plague, they are yellow, cheap-looking garbage that does not deserve to be on your wife's finger.
Clarity:
You can't get a "flawless" they are nearly impossible to find, and they would cost too much.
Don't get an "internally flawless," you can find them but they also cost way too much
I wouldn't go for a VVS1 or VVS2 clarity rating. Diamonds of these clarities cost to much with no visible difference compared to lower rated diamonds.
Now for full disclosure, I bought a VVS2 diamond for my wife, but it was because I was lucky and found one that wasn't so expensive, and I went overkill since I did not know how much of a visible difference there was with lower diamonds. There wasn't any difference, oh well.
Go fo VS1 and VS2 clarity rated diamonds. These are cheaper than the higher ratings and clear enough so you can't see any flaws without 10x magnification. They souldn't detract from the diamond at all.
SI1 and SI2 can also be ok, but you really have to look at them to determine it. I would not buy SI1 or SI2 on-line since you can't look at them. These have impurities and flaws in them that MIGHT affect how the diamond looks, but you can't be sure. I've seen SI1 diamonds that look perfectly fine. To be sure, go for VS1 and VS2. If you're on a budget, you can go for SI1, but take a good look at it and if it's not good, you can send it back (at least with blue nile you should be able to)
AVOID ANY "I" CLARITY DIAMOND LIKE DEATH ITSELF!!!! They are absolute junk, and will look like junk. I don't care how much less they cost, don't buy them.
Carats:
Ugh, the worst part. This is because most girls expect "1 carat" and most of the population is brainwashed into thinking "has to be at least a carat." (I heard that from my sister) That is why the price difference jumps so greatly at the 1.00 ct mark. (bigger diamonds are more expensive also because they are rarer, but it's the public perception and demand that drives that big jump at 1 carat)
If you can get away with smaller because your wife-to-be doesn't care, great, you made a smart choice for your wife. If she will flip out if it's not "big enough" because she wants to show off and keep up with her friends (well, whatever you get her, she'll show it off to her friends, that's why it has to sparkle, see why "cut" is so important?) well do you REALLY want to marry someone like that anyway? You don't want someone too materialistic.
If you HAVE to have 1ct or bigger, just remember the stuff I said up top so you don't blow your car insurance/turbo money on a diamond you can't afford, and also so you don't get a 1ct diamond that looks like crap because you needed to get an "I" clarity so you could afford it.
If 1ct is still too much money, then get a slightly smaller diamond. Trust me, she won't be able to tell a 0.9 vs a 1.0ct diamond. Almost no one will, and the price will be lower.
I'd reccommend a 0.7 to 0.8ct myself. About 3/4 ct is noticeably less money, and still big enough to look nice. (not that 0.5ct. doesn't look nice, but a little bigger than that tends to look a little nicer)
So, cliff notes version:
Cut (and polish/symmetry): "very good" to "excellent"
Color: G,H,I, (J if it's a yellow ring and you're on a budget)
Clarity: VS1 to VS2, SI1 if you look at it and it's ok
Carat: 0.7 to 0.9, if you can get away with it 
Good luck, and don't listen to anyone who says "must cost 2 months salary" Originally it was 1 month, now it's two months and sometimes even some people say 3 months! It's crazy. Spend what you can afford that is reasonable. "Tutto fa brodo."
Todd Scungio
98 RS
15.173 @ 90.70 MPH
And also a 2011 Ralliart
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