We spent about $2,100 this year just to start putting together a home studio project. We bought a Digi002 Rack, a Pair of Event Studio Precision 8 monitors, and a Shure KSM32 mic. We haven't even started on the acoustic reinforcement of the booths.
We got Pro Tools LE, Reason 3.0.3, Acid Pro, Sound Forge, Sibelius, Adobe Audition, and Recycle to play around with.