Instead of creating a self-signed cert, create a self-signed CA, and sign your HTTPS certificate with that. It's easier to ask users to install a CA than a single server cert, and you can create new certs (eg. for subdomains, or to update expired certs) without users having to install a server cert again.
You can then decide later whether it's worth the $30 to switch from a cert signed by your own CA to the same cert signed by GoDaddy or whoever.
Either way, don't have an HTTP page with a form posted to HTTPS. The user cannot see that that's where it's going; they'd have to view source to check the form hasn't been hijacked to point elsewhere and no-one's going to do that. You would have to have an HTTP front page with the CA link and a separate link to the HTTPS login form.
Asking users to install a CA with a cert downloaded via plain HTTP is a bit naughty: if there were a man-in-the-middle they could replace your CA on the fly and hijack the ensuing HTTPS connections. The chances of this actually happening are quite low as it would have to be a targeted attack as opposed to plain old automated sniffing, but really you ought to be hosting the CA download link on some other HTTPS-protected service.
Customer acceptance is a matter only you can answer, knowing who your users are. Certainly the Firefox interface is excessively scary. If CAs like GoDaddy are down to $30 these days I would probably go for it; it used to be a lot, lot worse.
Assuming support on old and niche browsers is not much of an issue, just go for the cheapest CA available. You are supposed to be paying to have the CA properly verify who you are, but in practice that's not the way it works and it never has been, so paying extra for more thorough checks gets you almost nothing. Verisign's extortionate prices survive through corporate inertia alone.
CAs are there to receive money for doing nothing but owning a few hundred bits of private key. The identity-verifying stuff that was supposed to have been part of the CA mandate has been moved to EV certificates. Which are even more of a rip-off. Joy.