Finally decided to go for it.
Cost:
Dell Mini 9, 32 gig SSD (solid-state drive, no spinning hard drives), 1.3 megapix camera, 2 gig memory. - $368
External DVD burner - not necessary, but will make it a lot easier and it's good to have. It's very compact, and will help in much more than just this project. - $43
Two USB drives just for this project, 8 gigs and 1 gig - $13.50
Mac OS X, iLife, iWork - $133
Programming in Objective-C 2.0 (2nd Edition) by Stephen Kochan - $30
Beginning iPhone Development: Exploring the iPhone SDK by Dave Mark - $27
Total out of pocket - $614.50.
Will start working on it Friday.
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