Front brake pads and rotor replacement

[ryuujin]

I'm about to replace the front brake pads on my 2001 boxster. However I have read at different sites that if the wear lip on the rotors is about 1mm then the rotors need to be replaced as well. Is this the case or can the rotors be machined flat? Also any suggestions as to any aftermarket pads or rotors as opposed to the OEM parts? I've found a local brake manufacturer here iin Australia that has drilled and slotted rotors for about $570 Australian (about $0.91 US Dollars). Any advice about the front brake set up is welcome.