eBay is a great place to save money in general. The Dynastar 4800 Legend would be a good choice (there are a lot of excellent skis in the upper mid-range though). You ought to be able to find the 4800 new for $350-$400. Call Sports Liquidator (an eBay seller and see what they'll do on price). Buying used equipment is a gamble, but there is lots of great stuff out there at bargain basement prices - I know, Ive sold some. Most people will put fewer than 10 days of use on equipment in a season and decide they want to exchange it...
Start making a list of possible skis and try to find a place to demo them. A great place to get started in making a list of candidates is:http://www.ts2003.com/
Don't buy a ski that is too long - it will hold you back. We don't know your size, so it is impossible to say what too long would be exactly. Average lengths for a male, depending on the type of ski would be between 165 and 175cm.
There are lots of good bindings too. You'll want something with some lift under it. The Look P10 or P12 Lifter (depending on your weight - the P12 is stronger) would be just one of many good choices (Marker, Salomon, or Rossignol make great bindings too). Last year's model can save you bucks and make absolutely no difference to your skiing - just make sure you don't get stuck with a low-end model.
Boots are the most important part. Fit is critical. Many of us have spent years and $$$ figuring this out. You definitely want a person who knows what they are doing to fit you - A good bootfitter will identify the makes and models best suited to your feet and skill level, and will ***get you into the right size***. My wife and I both ski in boots a size and a half smaller than our shoe size. I think this is fairly standard. All that cushioning in the boot liner packs out after a few times on the slopes, so if the boot is too big your foot is going to slosh around and diminish your ability to control the ski (and may cause other problems - blisters, blacktoe, etc.). I would also strongly encourage you to get a footbed made (maybe do this after you have skied the boots a few days -).
You can buy the boots on eBay and save some - once you have been fitted and know exactly what model and size you need - but you should still plan on going to a bootfitter for some adjustments (fore-aft balance - perhaps some lift under the heel, canting, etc.) and a footbed (about $100).
Don't gamble or scrimp on your boots - if you have to, look to save money on the skis. Read about boots both at the Footloose website and Peter Keelty's (both links above). There are folks on this site who can direct you to qualified bootfitters in your area.