Wal-Mart hobby paint

I use it a lot. Sometimes it'll have a chalky look when it dries depending on the brand. The key is to water it down, you have to experiment, but I use it a lot for parts that don't get seen very often. The hair on my DUke Nukem custom was painted with it as was my Batou figure.

I will give you my opinion. I like the cheap hobby paint.....because its cheap. Some of your pricier paints have better durability, but unless you are playing with the figure, throwing it against a wall, etc. The should do you just fine. The key to using the cheapo hobby paints in the prep and finish work...primer, paint, then a good sealant. If the figure is just going on a shelf to display, I would say they would be just fine.
I know others would disagree, and if you are making customs to sell, go with the better paints.