Welcome aboard Trans..
I don't know if I can give you much help to point you in the right direction, but the answers to your questions depend largely on your situation.
First you mentioned tools, yep, you'll need all the basic hand tools and a place to keep them. Special tools tend to be aquired as you find a need for them. A nice beginer set can be bought at Sears for several hundred dollars & Sears also has a selection of nice boxes. Quality used stuff can be found at swap meets etc. As far as the cost of a project car goes... there is no minimum or maximum. I would advise starting out with a Chevy or Ford, just because there are tons of inexpensive (comparatively) parts available for almost any year you choose. Plenty of books & manuals for both are also available..check the web. Plan your project on paper first, calculate the cost & time...then double or triple it. Good Luck