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If you're not going to use the machine for magnets or stuff, the 500 is going to work just fine for you. :)
I got my 510 for under $38 on Amazon.com, It's worth it to me since I'm using it for my magnetic save the dates, my favors, and my invitations. It has to be one of the coolest things ever invented.
Good luck on your invites!! The fabric idea sounds awesome!
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It seems to me that the main difference between the 2 is that X 500 is a simple sticker maker--putting adhesive on only 1 side of paper/fabric/whatevs. While X 510 can also laminate, put adhesive on one or both sides, and laminate+adhesive all at once. And, ahem, the price is rather different as well. X500 around $35, and X510 around $50.
Now. I'm planning on buying one to adhere fabric to the backs of my invites, a la Martha (http://www.marthastewartweddings.com/goodthings/textiles-message?autonomy_kw=xyron&rsc=header_2). (awesome, right?!) Has anyone found a difference in quality between the 2 machines? I don't plan on using all the other functions, just one-sided adhesive, so that's also a part of it--I don't want to spend $50 just to get capabilities I'd never use if I could spend $35 and it still works just fine.
And input would be greatly appreciated!