I use a Marlin 1894C 357 magnum for rabbits, and squirrels quite a bit. As a matter of fact, I use it for everything from squirrels to deer here in Virginia.
I use 357s with 125g SPs for mostly everything exept deer. I load them to about 1500 fps, and although they kill with athority, they don't tend to blow up hides on predators much, and of course on small game, I take head shots.
38s in the 357 rifles actually make a perfect small game load, as long as you stay away from HP bullets. A SP in a 38 will just knock a hole through a squirrel or rabbit, and not tear up much meat at all.
As far as the cost, my 357s cost me about $3.75 for a box of 50. I buy Remington bulk bullets from Midway, and my primers from the gun show at about $15 per 1000. I live fairly close to the Radford Alliant Powder Plant, and the employees get powder(up to 8lbs a month) for a very cheap price. I'm friends with a lot of them, so I get my Unique, and a few other powders really cheap.
