Please go and see some more mowers, like Toro for example. You're on the right track with a RWD but the Craftsman mowers are not highly regarded here.
Some background; there is a company called 'MTD' that makes most of the mowers now available with a few exceptions, like Toro, Lawn-Boy, Snapper and Honda to name a few good homeowner-type brands. MTD no longer shows all the brands they make on their website, just their 'house' brands. I'm not saying that's a bad thing, just that other companies have concentrated on one brand and have been making them for many years. Many companies that started out as independents and built up a good name have long since sold out to the conglomerate.
You can get a much better mower than a Craftsman or any of the other MTD brands for $450.
Another thing is, you don't want to get a mower that is not capable of mulching, bagging and discharging, and you want one that is easy and quick to change modes of operation.

good advice, thanks for the response. You being from the US, you probably have a greater selection of mowers to choose from then we do here in Canada. So what brand's would you recommend that I should look at?

Just to give you an idea of the brands available to me, here are some from a handful of our major retailers. Lawnboy, toro, yard machines, cub cadet, ariens, Troy-Bilt, yardworks.

About the 3-in-1 and changing modes of operation. Why would I want to do that exactly? All my life my dad bagged the trimmings, all we've ever done. I would assume once you have chosen you preferred method you wouldn't be switching back and forth? But it is still something to consider none the less.

IF one lets the lawn get too far along and you have near knee high grass, having the ability to discharge can be useful.
You can whack it down, let it dry a few hours and go back and bag it.
just an option that's nice to have if needed.

after reading some reviews, I am liking the mulching idea. I would have to stop and whole bunch of times to empty the bag if I were to collect them. The lawn I would say is about 100'x35' maybe, and the backyard 35'x25' approx.

here is a toro on sale (not much, $30 off) but it does have one pretty bad review on the website.

http://www.homedepot.ca/product/toro-personal-pace-walk-power-mower/908287

Check out used ones. A decent mower should run between $50-100....and if you are careful you should be able to pick one up that will last you for several years.

When you show up to purchase one...have the seller allow you to start it...and try cutting some grass. If they won't let you do that...then on to another mower.

A lot of used mowers are being sold by "garbage pickers"....people who pick up people's discards (often for free) do the basic service that it takes to get them running...and then offer them for sale.

Don't shy away from this sort of deal...remember that the seller knows small engines like the palm of his hand...and if you have trouble with your purchase...he can help you get it fixed reasonably.

Good luck...

that is good advice, however a family member has said they want to get me a good mower as a house warming present. So even though its not my money I still want to get a good deal.

"The lawn I would say is about 100'x35' maybe, and the backyard 35'x25' approx."...If your estimates are correct that is really not a very large area to mow. A quarter acre is 10890 square feet and the area you described is 4375 square Feet. If you mow regularly you'd only have to empty a bag 2 or 3 times.

"it does have one pretty bad review"...There will always be some who are unhappy. The happy ones often don't post.

I'd stick with Toro, Lawnboy (essentially a green Toro) and Honda. I'd look at Home Depot at least to get prices which probably can't be beaten. Then if you decide to buy elsewhere you'll know if the price they quote is competitive.

Also, if you have a Toro dealer near you, check out the Super Recycler models. They are better at mulching due to the "kick steps" under the deck which help "recycle" the cut grass stems into the rotating blade. These have a few other upgraded features as well. Don't get hung up on the HP ratings you see on the mowers. The design of the deck, blade and other components is more important as to how it cuts.

I passed up a deal on a lawnboy at homedepot mainly because it seemed under powered. It was listed with only a 149cc engine while the majority of what is available out there is closer to 190cc. So you're saying this actually doesn't matter as much?

It wasn't the only reason why I passed on the sale, apparently this particular lawnboy model had a pretty flimsy deck.

"So you're saying this actually doesn't matter as much?"...No it doesn't really matter much. A very common engine found on many mowers is a 160cc honda. As noted above, "The design of the deck, blade and other components is more important as to how it cuts."

"this particular lawnboy model had a pretty flimsy deck."...Try to find out the gauge steel used in the deck. Fourteen gauge is pretty common and adequate.

And by the way you're overthinking this. You're buying a $300. to $400. lawnmower, not a $30000. to $40000. vehicle.

nothing wrong with being an informed consumer :D

Do the research now and potentially have a mower for 10+ years instead of having to buy another in half the time.

Plus I have 2 months to research all this crap, lol. If I was in the house now and needed one asap then yes you're right I wouldn't be looking into this NEARLY as much.

Is there a smaller place that sells lawn and garden equipment near you? Much prefer them over the big box stores. And "X2" on buying one of the brands referred to earlier. Honda, Lawn Boy or Ariens would get my vote.

adblink, that wasn't a criticism, only a comment. Personally, I have bought things after a lot of research and they didn't work out well and I have bought things impulsively and they worked out just great.

and I appreciate all the help I really do. Essentially as soon as one of the above mentioned brand's go on sale I'm be picking one up.

1111GD, there is a smaller store (2 actually) near me that sell that kind of stuff that I will probably check out, just I find (or just assume) that the smaller places can't afford to put on the kind of sales that sometimes the larger box stores can do. I could be wrong but that is just what I have found with other items.