both myself and a friend have just started (about 3 mths ago).
we basically went into my local shop with said budget in pocket and asked for a nice waggler rod and a half decent reel (with spare spool) for £X cash (in our case £100 quid), we both were sorted with an excellent rod and reel combo, plus line, shot, few floats.
he plumbed for a little kids starter kit (hes 30!) which, although came in the most pathetic box the world has ever seen, had all the bits in it he needed, for 15 quid.
ive been happily fishing the near shelf of my local canal, and so far had really good results (4 1/2 pound bream on leicester canal is worth a double on a muddy puddle any day ;o]
anyhow, the main advice is to do it, and often, ive fished about 3 times a week, in stints of a couple of hours during the week, and one early starter on the weekend, and have built up quite a good standing (as long as its leicester canal!!)
its great, and more addictive than smack.
Go get yourself the basics with what you can afford and get out there!!
HTH
CTF