Grady,
Look at the second post from the top here titled "Sticky:
Rod building materials " for a list.
With a decent hand wrapper, dryer, and the rest of what you'll need short of your rod components, you can expect to spend about $200 for start-up. In fact, we sell a kit with everything you need (even a DVD) for $189 with free shipping. This includes the tools & supplies needed.
As far as Books VS DVD's, it really depends on the kind of rods you want to build and how you process information. Lots of people do better seeing it done VS reading about it.
If you're going to build Saltwater rods, Doc Ski's 2 DVD set is as good as it gets. Almost 3 hours of info on them. For general info, the Flex Coat DVD (the one that comes in the starter kit) shows how to build rods both by hand as well as on power machines. There are quite a few specialty DVD's too like marbling, trim bands, diamond wraps, fly rods, etc...
As for books, Tom Kirkman's "Rod Builders Guide" is a very good starting point covering a lot of subjects and most types of rods. It's also very easy to follow and under $15. Books like Flex Coat's & Gudebrod's (under $5) are very basic, but touch on most of the key points. Again, lots of specialty books on thread art, building specific types of rods, etc...