Hey ijez,
Welcome to the sport. Don't suppose you are over doing it with a whole single lesson do you????
If you establish a relationship with a decent instructor, they will guide you with what you should buy. Preferably pick an instructor that doesn't sell gear at a retail level so you get the right advice and not whats slow in the shop.
For $500 - $1000 you will get complete crap, forget it, keep saving. $500 will get you a semi decent 2nd hand board, expect to pay around $650 for a good one.
A good recent model kite (less than 18 months old) will set you back around $900 - $1200 depending upon make model and usage.
Anything super cheap is either (a)flogged to death, (b) high performance and hard to sell, (c) Moses' first kite or (d) a real dog.
Safety and performance have come a long way in the last 18 months and is worth paying the extra bucks for.
Good luck, ... and go get another lesson,