like was stated above, most hobby shops nowadays are in it for the money, not the love of the hobby. the 2 major hobby shops in my area, while most of the time mean well, don't know what's NEEDED for a beginner, but they'd never tell you that. you'll walk in, tell them your budget, and you'd be lucky to have anything left when you're done. i've seen people come to my field with one of those "all inclusive" starter kits and a basic field kit (i think thunder tiger makes one) and successfully learn how to fly, never buying additional hardware or field accessories. props, glow plugs, fuel, etc are things you've got to have, and you'll be buying those things forever, as long as you're in this hobby. oh...and a gallon might last you one weekend, or one month, it depends on how often you fly. figure your plane's got a 10oz tank in it, and you're using a .40 sized engine. that's about 20-25 mins of flying before you run out. i've seen folks fly till their out of fuel, land, and fill it right back up and go again, all day long. it really depends on how bad you've got it and if your instructor can keep up with you.
for your budget you should have no problem getting into the hobby. what you might try doing to increase your available funds is get your dad into it. you'd be amazed at how fast your budget will grow when he's grinning like a kid in a candy shop when he makes his first landing!
while i prefer arfs right now, there's nothing wrong with building a kit. there's plenty of good kits for beginners, and they'll teach you not only how to build, but how to repair the inevitable crash.
don't worry...it does sound overwhelming, and it is, at first. give it a few months and you'll be talking the talk; not long after that you'll be walking the walk!