My current setup is an OLD broken down laser printer off ebay ( 0.99 + $20 shipping off ebay), a big batch of single sided cost like 10 or 20 bucks but im pretty much set for LIFE on single sided, an iron, and various etchants.
If i started now i'd do this:
PRINTER: watch ebay for a FIRE SALE laser printer or find access to one. You can probably use one at the library or your work. Much nicer to use your own.
PCB: Single or doublesided board. Look for CHEAP and bulk. Something like this :
http://cgi.ebay.com/24-shts.Copper-Clad-Laminate,-FR-4,-060-Thk,--4x6.---SS_W0QQitemZ310144241841QQcmdZViewItem (not this one though shipping would kill you). Id avoid the current main ebay sellers their prices are astronomical and ridiculous.
Paper: DONT bother with photopaper. Some people like wasting money on their hobby. Ive had BETTER results with ultracheap printer paper. It disolves far more readily. Ideally glossy magazine paper if you can get your printer to feed it (mine eats it). Remember if it doesnt transfer well you can scrub it off and try again.
Etchant: 1 gal muriatic acid (HCL) $7 at hardware store
16 oz hydrogen peroxide at walmart $1
For added eficiency - fish tank bubbler $5 to convert
the etchant to Cupric chloride (recyclable self renewing
etchant)
Containers: i use the cheap $2 plastic sandwich containers from walmert for small etches but I have a LOt of them from my job. I find for large boards a 2 liter coke bottle works great. I store etchant in a 1gallon or so plastic fruit juice container.
If you go this method you have pretty much an inexhaustable supply of everything with no real future outlay other than new pcb and someday toner refill for your printer. Thats actually cheap for OLD printers (mine was $14).
Going this route (and using someones printer) you can have a large stock of pcb making material for what a bottle of (dangerous) FCL etchant and a small 2 sided piece of copper clad would cost you at radio shack.
If i wanted to move UP from there id buy a laminator and build myself a really nice bubbler/etchant tank but i dont have room for those anyway.
Btw the cupric chloride is more environmentally friendly, safer, cheaper and smarter.