I agree with what was said above about the first homebrew batch, you don't need much and I agree with the two above - The Complete Joy of Homebrewing Third Edition, Papazian is a must.
$150 seems about right for all the equipment you would need, after that though it only costs between $15-30 every time you brew a 5 gal batch. Cheaper than buying beer :)
For homebrewing a couple of more good sources of information are
www.byo.com (Brew Your Own magazine). I think it is a must have magazine.
Also joining the American Homebrewers Association is nice.
http://www.beertown.org/ $30 and you get a magazine, all sorts of pub discounts, plus cheaper tickets to the greatest event in the world. The Great American Beer Festival.
http://www.beertown.org/events/gabf/index.htm Can you say tasting over 1,000 beers? mmmmm I'll be there this year.
As far as good beers, has anyone had Stone Brew Co. Levitation? Great starter beer for people who want to get into stronger stuff but mostly drink light beers.
A couple other favorites of mine-
Dogfishhead-60,90 and 120 min IPA (though you can't get in Ca)
Marin Brewing Co. - IPA, Hefe and Pale ale. World class brewing company if you can get them.
Speakeasy brewing - IPA, Pale ale
Anything from Stone. The vertical epic ale this year was mind blowing.