Cyclone systems are the best, but are expensive. If you've got the money, go for one of these.
The standard bag type dust collector of at least 1.5 HP will work for a small shop, but will not support the operation of multiple machines at one time. I move my dust collector from machine to machine rather than having an elaborate ducting system. The more ductwork you have, the more HP you need to still get good "draw". Also, spring for the 1 or 2 micron cannister filter. The 30 micron bags will not protect you from the fine dust that is what you really want to eliminate.
Ideally, if you can locate the unit outside your shop and run the ductwork to the unit. In this way, anything the filter doesn't catch will not be released back into the shop.
Even with dust collection, there will still be lots of fine dust released in the shop. I run a Jet air cleaner in my shop in addition to my dust collection. The air cleaner constantly circulates the air in the shop and filters out the fine stuff down to .5 mircons.