I'm actually using an all grain kit I picked up on sale for $18. It's a 1 gal IPA made by a company in Brooklyn: Brooklyn Brew Shop. On their website, they charge $40 for any of around 10 kits of various beer styles. It comes with around 2 lbs of grain for mash (not sure what kinds), along with 2 vac-sealed hop pellet packets. With a 1 gal glass carboy, a length of tubing, an airlock, a racking cane, and a packet of c-brite, it basically gives you everything you need besides a strainer and a couple pots for the mash and the boil. From the stuff I've read here, the All Grain technique seems to be reserved for slightly more experienced brewers, but the website's instruction were fairly easy to follow and I have a batch almost a week into fermentation.
The process felt a little more "authentic" than I imagine the extract method would, though I don't have the necessary experience to be definitive. Either way, if you read the
wiki outlining the basic steps for brewing, and follow the manufacturer's instructions, you shouldn't have any problems.
These kits don't seem to be very popular, or even readily available, but I really enjoyed the process. If you choose to start with one, and enjoy it, I'd like to hear about your experience with it.
Perceived downside: small carboy limits batch size
Upsides: you can usually brew a batch with what you have around the house. The size of the carboy lends itself to future experimentation on recipes: small, quick batches that don't cost much and don't waste much when/if they go south. Plus, you get a gallon of beer and the experience for relatively cheap. You can always buy more equipment to upgrade later, but why drop all that money at the front end, when all the equipment you get in this kit will be useful as you progress further into the hobby.