Suggested cheep min-studio list = [$70-$100 not including computer stuff]: Light weight copy paper (for when you just want to play), normal hole punch (for copy paper), Round peg bar (for copy paper), Animation paper 10-Field ACME Punched, ACME Peg Bar, any type of pencil or marking tool you like, Craft Light Box (must be at least 12 inches wide); Computer stuff: Normal Scanner, Flash CS (or lower) and creativity (not sold in stores).
If you are looking to be more than a hobbyist you have an expensive and difficult [but rewarding] road ahead of you and I just suggest you read a lot before you buy or commit because most of the time you will not find the good deals.
Supplies in Detail
There are several ways you can go. It all depends on how much you are willing to spend and what you eventually want to end up with. Below is the list of things you can get/ need, as well as my opinion on them and the prices I usually see them selling for. I also list a place to get them. But don't settle for the link if you can find them cheaper some where else.
Registration [So that your images all line up.]
Peg Bars can be bought individually or they can come with a light table. You put hole punched paper on them so the images line up. Either way, note what you are buying because you will have to have matching punched paper.
Round peg bar [$4-$6] Good if you don't want to commit too much but your images will shift some what. A normal hole punch will work with this.
Round PegBar
ACME Peg Bar [$4-$6]: This works better. The thing is you will also need to get ACME hole punched paper or an ACME hole puncher (Expensive though)
Acme Pegbar
Paper
Normal Copy Paper (light weight is best) [$6-$12] Cheep and you can get it at anywhere. Good if you just want to play around. Will require that you use Round Peg Unless you want to commit to a ACME Hole Puncher. Is more difficult to animate with (can't trace as well and cannot flip as well and you have to animate small). You will have to draw small.
Animation Paper (Round or ACME usually comes in 500 sheets) [$12-$40] You have a few choices when it comes to animating on animation paper. You can get 10Field, 12Field or even 16Field and you can get it in not punched, Round hole, or ACME Punched.
I just suggest 10 field or 12 Field ACME Punched. 10 is smaller and not quite as open as 12 Field. 10 will fit on any normal scanner while 12 field will require a larger scanner. So you decide. And if you choose ACME be sure to have an ACME Peg Bar.
Acme Punched 10F
Pencils or other marking tools
Col-Erase is often times peddled as the animation pencil, in that doesn't erase as well as graphite but it doesn't smear. I don't think it is that special. Really I say draw with what ever you want and feel comfortable with. Tombow HB is my suggestion if you want something specifically for animation. And if you are worried about ruining your hand as a hard core animator then try something softer like ebony.
Tracing
You need to be able to see your last image so you can judge the movement, keep the character on model and well just animate. You either need to have light shine behind your paper or have the ability to flip like mad. I work on paltex animation disk with a ACME peg bar on a special desk, (expensive but lovely). There are many other options though.
Light Box [$20-$100+]: You can get a light box with or without the actual light. I suggest one with the light attached. You can get really fancy expensive ones but I've found if you just get a normal Craft Light box that includes a florescent light and just tape a peg bar to it, it works out well. I got one for $30.
Some choices: light boxes
Animation Disk [$40-$100] This is a round clear plastic disk that has a Peg bar fitted on it. You can put it in a special desk or work with it on your lap. (What I do is just have one on my lap and have a lamp shine behind it.)
The Disk I have (works awesome, ACME)
You can get creative when it comes to creating a set up where you can get light to shine behind your animation. I took a desk cut a hole that fitted my disk in it and set up a light behind. My friend has a desk drawer converted into a animation light box (I am still amazed). So you can construct your own thing or buy some fancy set up, whatever suits you best.
Seeing your Animation Play
You drew it an now you wan to see it move huh? Well this is the difficult part. You can invest in your own lunch box pencil test setup (no less than $2000 if that) or find other means. Of course if you have access to communal Pencil test system then you are a fortunate person. For those who don't there are a few paths to take. With a scanner and Flash you can see your animation but it takes time. A camera connected to the computer and Animation Thief is a good way to see your animation soon after you drew it. The Camera has to be capable of taking single frames as commanded by the program so beware of that fact. The more you can see your animation as you develop it the better it will be. So A pencil test system of some sort is preferred.
Animation Thief [$50-$150] A good computer program for capturing animation frames through a camera connected to the computer. It is fast and a cheaper program. You can bypass the scanning stage and you see your results fast. The light quality is dependant on the camera, and can change from take to take. And you have to have a camera set up with it. Cameras [not cheap] I really don't know much about this I'm sorry. link
Putting it all together
Computer [?] yeah just make sure what what ever it is it can handle big images and LOTS of them.
Scanner [?] If you are working with 12 field you need a scanner that has a big enough surface which most scanners do not have. So Either get a big scanner or use 10-Field. When scanning you will need to tape a peg bar on the side and put the drawings on it so that they all end up lining up in the computer.
Flash [?] a good simple program that you can actually put hand drawn animation together in. It is too automated for my taste but it is probably the best bet.
Adobe After Effects [?] My favorite, it's easy to put animation in and control. It also can out put as anything as any video format, though I would not recommend it for .swf.
Final Cut Pro [?] Great for editing the shots you created together. Do not use it to put animation frames together in. It is better for general editing than After Effects.
BackUp [?] You will find it best to have a way to back up your files, especial once you start taking on bigger projects. Cd's are ok but ZIP, REV or firewire might be a better way to go. You pick.
There are of course many more things I could go through but I don't know much more. I hope this all helps.
+ Razi +