EJames,
He's on a very limited budget, and buying Real Flight would chew up half of it. (Please turn off your cap locks. Reading all capital letters is difficult and considered rude; it looks like you're SHOUTING! )

FH,
While it's certainly possible to end up with "used up" equipment when buying used, going to a club and asking about used isn't a bad idea. I've had a number of kids show up at our club looking to get started, and I've yet to see any of our members try to unload junk on them.

One member sold a 15 year old a used 40 size trainer with a good engine and radio for $150. He threw in a couple glow plugs and props as well. The trainer didn't have so much as a patch on it. The only problem was that the radio equipment was Airtronics (no one here uses them), so he also loaned him a second transmitter and a buddy cord so the kid could get instruction without "passing the Tx".

I would never recommend that a beginner just go out and shop for used on his own, but getting with a club makes your chances pretty good.

To find a local club, go to the AMA website. They have a club locater page, all you do is plug in your Zip Code.
http://www.modelair.org/
Dennis-