Good first project if you are itching to build something. But if you just want to get started with basics before going whole-hog (all grain) you can get some basic equipment for brewing extract beers and just about all of it will also be used later if you decide to go all grain. Sorry I didn't recognize your username in the PM you sent me, but you may want to update your profile with a little more info - the town would've triggered my memory if it was in your profile or PM. Anyway, do you know if you want to brew all-grain or partial mash right from the start? If not sure, you may want to keep your eyes peeled for a good sized brew pot and piece together an equipment kit -- or keep a good eye on craigslist. I bought a good amount of stuff from CL in January once I decided to get back into brewing. I already had a hydrometer and fermenting bucket and a bottle capper, but in the CL deal I got 3 kegs, a bunch of pinlock and balllock connectors, a carboy, a bucket, a CO2 tank with dual gauge regulator, and a bunch of misc small stuff. I've only bought about $700 more stuff since then!! (built homemade kegerator, bought extra carboy, brew supplies, wine thief, auto-siphon, tubing, clamps, connectors, etc. etc.)
I'm pretty set on equipment for now unless I decide to go all grain -- but if I can get some carboys on a good deal I'd like to have several more. Particularly the 6 gal size, since I want to do some wines and they need 6 gal.