Just to add to the above:
Have you read the articles on the home page of this site? Go down the left column on this page to the bottom and click "TLB Home." The articles are listed in the left column of the home page and are extremely helpful (they enabled me to cut my pack weight by more than half). Be sure to read them before buying any gear.
Internal frame pack: Advantage--the pack moves with you and (if properly fitted and adjusted) feels like a part of your body. Disadvantage: less ventilation between you and pack.
External frame: Advantage--more ventilation between you and pack. Disadvantage--the pack seems to have a life of its own, zigging when you zag. After some really close calls, I'd never wear one again. They're heavy, too!
You do know that it's advisable to buy your pack last, after you have your other gear, to make sure the pack fits your gear? As others have said, get a pack fitting from someone who really knows what they're doing, so you know what a well-fitted pack feels like. The high-school kid at Dick's Sporting Goods (or at REI, for that matter) is not someone who can fit you properly. Get someone experienced! The same is true of footwear. Each person is built a bit differently, and pack fit is almost as individual as shoe fit.
I'm not going to get into the tent vs. hammock controversy. I prefer a tent because I sleep with my dog (he's part of my sleep system, keeping my feet warm) and because I do a lot of camping at or above timberline. I admit the hammock might be better when you're trying to find a campsite in a forested area with lots of underbrush. Our favorite phrase around here is YMMV, Your Mileage May Vary. If you can borrow or rent gear, you may be able to try out both and see which you prefer before spending major $$$.
The other shelter possibility--definitely cheaper--is a tarp plus bug net plus ground sheet instead of a tent. I'd go this route if I didn't need a bug-free space for my dog, and I do plan to use just a tarp after bug season is over.
Knife: I take a really small Leatherman, the Micra, which weighs just under 2 oz. That's because I use the pliers and the file (for fingernails) a lot more than the blade itself. The blade is adequate for making frizz sticks for fires or putting a point on a stake made out of a stick if I lose a tent stake or cleaning a fish if it isn't too big (the latter always get away anyway). The idea is
not to cut up the forest--cutting green wood is illegal and you want to leave as little trace as possible of your passing. The truly ultralight folks seem to get along just fine with a single edge razor blade. Personally, I like something with a small handle for some leverage when cutting. Of course, if I were a hunter I would take a knife I could dress a deer (or whatever) with, which would be a lot bigger, but only in hunting season.
Used gear--make sure you can return it if it doesn't fit or turns out to have suffered major damage! Do watch this forum. There are some who just have to have the latest and lightest tent and sell their old models. Then there are some of us who discover after using a tent for a while that it doesn't meet our needs. That happened to me. Another member of this forum bought it and hasn't complained yet!
There are other threads in the beginners section here that discuss budget gear. Search the more recent archives, too. I'll give you a few suggestions:
Mark Verber's website has budget suggestions and links to low-budget lists (a few links don't work, but most do). His "Recommended Outdoor Gear" is well worth reading and includes budget suggestions at the end. Thrift stores and (sometimes) military surplus stores are great places to shop, especially for clothing (just be sure to avoid any cotton!). Big box stores like Target, KMart and WallyWorld have a good variety of synthetic breathable athletic clothing (look in the athletic department, not sporting goods) that is as good as and generally cheaper than what you get at REI (Really Expensive Items) or other specialty stores. Inexpensive does not necessarily mean heavy! Do get a good postage scale that weighs to the nearest tenth of an ounce and take it with you when you're shopping. Weigh each item. A computer spreadsheet (keep it simple but organize by systems, using the gear lists on the home page of this site as examples) helps you keep track of your pack weight and also acts as a checklist for each trip.