Im looking to get into D&D, after playing (and loving), only one campaign of 4th edition. I was wondering how far the starter kit www.wizards.com/DnD/Product.aspx?x=dnd/p... would take me, in terms of creating characters and campaigns etc., as someone who cant afford the proper books.
Sorry if this is in the wrong thread, Im very new to this site.
The starter kit will get you off and running, and the first module, H1: Keep on the Shadowfell, is now available for free on the Wizards main site. For meat and potatoes, you'd really only need the three core books, but the Starter Kit should hold you over while you save up some cash. I think you can find used ones online, if that path is available to you. Otherwise, folks here can give you some information or point you to other sources.
I hope you have lots of fun!
Thank you, I will get saving. Also, are Miniatures needed, or can I get by with tokens, or lego figures or suchlike?
Indeed, miniatures are needed in D&D 4th Edition. But tokens, chess pieces and the like do the job as well. Of course, it's better to represent an orc with a orc miniature but it works just fine a big die or token. Have fun!
Miniatures are a helpful visual aid, but I only use them when the combat gets dicey (no pun intended) and quick knowledge of positions is crucial. You can use anything to represent your monsters and characters, and any grid will do, but a 1"x1" grid is best. WotC's D&D miniatures are, of course, best suited to the game, but people will use anything from the metal minis that they paint themselves (big advantage, you can usually get closer to how you imagine your character to look) to Mageknight figurines to WoW minis, to coins, or anything that will differentiate one character from another (or one type of monster from another). Minis can get expensive, though. What I do, rather than buy 8 bugbears, for example, is I print off a sheet of bugbears on a slightly less than 1x1 cavas (so I have room to pick them up when they're adjacent). Then it's analog cut-and-paste onto posterboard and tah-dah! One bugbeard horde!
Other people have their own ways to make minis, some of which stand up, which is better looking than flat tokens and only a little harder to store.
The Starter Kit will have some tiles with it, I believe. The tiles are very cool, but they may not fit every situation you find yourself up against. Some people use a large sheet of 1x1 grid paper, others use a dry-erase version. Most of the time, I use a standard tablet of grid paper and draw my maps ahead of time in ink and mark positions in pencil. It's cheap and it works for my group. WotC's Dungeon Tiles are very cool visually, but be warned. Buying all those minis and maps can get exensive. That's another thing you'll have to save up for if you insist on going for the look. Meanwhile, anything will work.
For reliable sources of minis, I've heard of many places online that sell individual minis. I can't think of any names right now, but folks here can tell you who's reputable.
Thank you, in that case, I'll save my money for the books before the miniatures. And now my final question, which of the three books should I get first? I'm thinking Players Handbook...
I would recomend Players Handbook, Dungeon Masters Guide and Monster Manual if you are going to DM
For players you dont really need more than the Palyers handbook 
Seconded. If you're going to be the DM, you pretty much need the three core books. If they're a bit high, see if your group is willing to pitch in. If you're a Player, you only need the Player's Handbook. Any books past that are purely optional.
Buying the starter set is still a worthwhile investment if not just for the tokens and the tiles. As a DM I still use the tokens in many of my games and the tiles have been used in all manner of combination with other scenery bits.
As for grid paper. Try to find an office supply shop. It's possible (depending on location) to buy or order large pads of 1" graph paper. These are perfect for self-designed dungeons and you can easily do 1-2 rooms per page and switch them out relatively quickly. They're also fairly inexpensive and will last awhile.
Alternately you can buy dry-erase mats from a number of manufacturers. The advantage is that they are re-usable and generate less waste. Disadvantage is that you can't really draw out an entire dungeon ahead of time so having a smaller pre-drawn map to use as a reference is pretty essential.
I'd say with just the Player's Handbook and the free Keep on the Shadowfell module there's a good chance you could be playing for weeks with out ever needing any information from the DMG or Monster Manual.
You could easily be ready to play the game for less than $15.