Firstly- Get lessons!!!!
Go for a bow kite mate, size will depend on your weight and general wind you have in your area- eg i'm 85kg and the wind i ride in is usually between 15-25kts. So i ride an 11M kite.
And definetly go second hand for the kite, check out the buy and sell section, you're sure to trash it. If they have had repairs, thats ok. You'll prob add to it.
CABRINHA switchblades/SLINGSHOT octanes/F-one Bandit's (go the bandit mate

) etc, there's plenty of selection. You can use these types of kites to get you riding until you figure out how far you want to take it and push yourself. These are very "general" kind of kites and after a while you might find they'll hold your progression back (bar the F-one), but they have good de-power and are safe and easy to fly.
Go for a new harness, make your selection carefully. This is something that you can have for years if you look after it, if you are comfy in it you will ride longer in the water. Shops will let you try them on for size etc. Should cost about $300- $350.
The board I would suggest go new as well. If you have a good board you will find it easier to learn and progress. CARDBOARD tempo's are nice boards. New boards will cost roughly $1000.
This should leave you 700 odd dollars for a kite, which would be about right for something 2008/2009. Hope this helps.