I think I'd echo what Carl, Steve and Tony said----with a limited budget, it's much better to buy a few good tools than a lot of cheap tools you'll be replacing later. It's amazing what you can build with just a few good tools----for example, you can do without a drill press by simply buying a good power hand drill and a drilling guide (guide sells for $40)----with the guide you can drill nice straight holes in many more places than a drill press can.
When I lost all my tools in a fire, all my hand power tools were Ryobi built Sears----at that time, called Sears Best-----not-----ended up having to replace each one except the belt and finish sanders. Skill, with the exception of their worm drive circular saw, is to Bosch, what Black and Decker is to DeWalt----the cheaper line of tools.
Believe me, you'll be much happier with a few selected, good quality tools than loading your shop with cheap tools.
When it comes to the router, I'd suggest you wait until you can buy a professional level router (Bosch, DeWalt, Milwaukee, Porter-Cable, etc.). With routers build quality will determine operator safety. Actually learned that one from this forum. It's more of an issue with cutters, but the router comes into play too.
From my experience, you're definitely better off building a shop slowly with good tools and buying a lot of junk up front and having to fight to get the results you're after (if it's even possible).
Unfortunately . . . that only applies to hand tools like wrenches, levels, sockets and screwdrivers . . . nothing that plugs in or wears out under normal use like power tools, power tool accesories, drill bits and saw blades.
Dude - I am/was in the same boat as you. I started a little more than a year ago, buying a couple of tools I figured would help me with some upcoming home improvement jobs. The woodworking "playground" opened up to me after that!
I started with Delta's Shopmaster series. For "bang for the buck", you can't beat them. $99 each for a CMS and a "bench saw" ( scaled down table saw ) and they both do just fine for me. Then again, I have yet to work in much hardwoods or large projects. While at Lowes, I grabbed a "valu-pak" type thing of clamps; $20 for a starter set of bar, C, and spring clamps.
Next up was a Porter Cable palm sander ( again, great value ) and an 18V Skil drill. I am pretty pleased with the quality of Skil, except for the fact that my 2 year old 12 volt charger just quit.
I was given an older Craftsman router and table by my father, but I think I will be getting a new router soon, probably a Porter-Cable for hand work. I'll leave the Craftsman mounted to the table.
For quite some time, that was all I needed to do some decent jobs, including some gifts for friends, and work around my place. Regardless of your decisions, remember if it sounds good to be true, it probably is!
RE: Craftman, Ryobi and what about skil? -READ ASAP
Welcome to the world of WWing.
About 30% of my tools are RYOBI: BT3000 table saw, Cordless drills, 18V circular saw, RO Sanders, Belt sander, OSS sander, Fixed Base Router. Warranty on Ryobi is TWO yrs -- Ryobi Craftsman version is only ONE yr and you have to pay for the additional yrs.
Delta grinder, Compound Miter Saw, Disk/Belt sander, small 1" bench sander.
DeWalt Radial Arm Saw, Porter-Cable Nailer, Plate Joiner and my favorite tool is the Porter-Cable Boss circular saw that I leave a plywood blade on. Craftsman 16" Commercial floor drill press. Two Skill 7 1/4" saws and an RBI scrollsaw and Dremel scrollsaw. Misc other hand tools, etc.
Start slow ---- go for the PC or Bosch combo router kit, PC Boss circular saw and straightedge, various small Ryobi tools ROS, Grinder, Belt sander, etc., Good quality hand tools, and a used Delta or Jet contractor tools or a new Ryobi BT table saw from Home Depot. Bench drill press or used floor model drill press, clamps and books and you have a start.
Bad idea to borrow tools -- there always is a problem down the road.
Good luck and feel free to contact me, Randy from Oceanside, CA