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I don't have budgies of my own, but I've been around them as a kid (grandmother's birds) and work with them at a lab at my university. I have an
amazon parrot, the DYHA you see on my head in my pic. He just turned 20. I wanted to throw some info and advice your way.
Yes, "puppy mill" bird breeding exists, but it will be hard to avoid if you're getting birds from a pet store. If you want to know where your birds are from, you could try having their leg band ID's traced. Almost all leg bands used for cage birds come from L&M, and if you contact them, they can send you a trace-request form which (for a small fee) will locate the purchaser of the band (who will thus be the breeder of the bird). They contact the breeder first, and if the breeder grants permission to do so, L&M will send you the breeder's contact info. Here is some information on leg bands, including how to trace them:
http://www.avianweb.com/legbands.html
http://www.ehow.com/how_5848512_bird-breeder-tag-number.html
As for food, you will hear a wide variety of brands being mentioned. Yes, pellets are generally better than an all-seed diet, but an all-pellet diet isn't the best, either. Be sure to offer dark leafy green stuff daily. Clip a floret of broccoli, a leaf of spinach, etc. to the cage each day and let the birds go at it. Budgies come from an arid environment, and aren't generally fond of soft or juicy fruits (like citrus or bananas or berries). Give them dark greens, and veggies that are dark orange or red (like carrots, sweet potatoes, peppers).
If you want to REALLY give them something great, check out the "micrograin" mix at
www.chinaprairie.com to use for making sprouts. I've been feeding China Prairie to my
amazon since I got him when he was 7YO. You don't have to bother getting the sprout tower. Just get one jar and one lid (maybe an extra jar and lid in case of breakage), and the green supplement powder. Put some dry mix in the jar (it doubles or triples in volume after soaking/sprouting, so for two budgies, you won't need much), fill with water, and let soak for 8-12 hours. Drain, rinse several times, and drain again. You can start serving it after it's completely soaked, spooning out a little into a dish and mixing in the green supplement powder. Put the rest in the fridge (if you have more than a few days' worth in the jar), or leave it out (if you have only a little and want the sprouting to happen more quickly). Each time you want to serve, rinse and drain first. When the jar is empty, wash it and start again. I've been doing this for my bird for almost 13 years now. He gets a sprout breakfast every day, has pellets in another dish for snacking, and gets a dinner of whatever I throw together. He's not a budgie, but it gives you the idea of having variety in the diet.
As far as other advice, I'd say to keep the cage in an area of your home that is active, but not near a common pathway for walking. Budgies are tiny, and a big human rushing past the cage all the time will make them jumpy. However, they like activity, so find a quiet corner of a busy room. Rather than "force-taming", try making "being friends with you" an attractive option. By this I mean try feeding treats from your hand instead of offering them in a dish. Allow the bird to come to you. Also, if the bird is generally terrified, keep the cage close to you, and mostly ignore him/her for a while. Move around slowly until he/she is used to you (remember how much bigger you are from the budgie's perspective).
As far as the teflon pans...it's not just cooking pans that have teflon. It's commonly found in irons and hair-dryers, for example. If you are moving soon, perhaps consider getting a non-teflon pan that your roommate can use until you leave...then let your roommate keep it as a parting gift. Be careful about cleaning your oven -- don't use the "self-clean" option, and try not to use any cleaners (for anything) that say on the instructions "use only in well-ventilated area." That's another way of saying "caustic fumes."
Good luck, and have fun!
~Chris