My recommendation to buy the good grinder first was for folks who already think they're likely to be serious about staying with it.
That being said, the Craftsman can be had for around 200, while the Coote can be had for around 500 with a good motor. They're both good starter grinders, and WAY better than the 1x30. I did the 1x30 thing for quite a while. Heck, I ground out a couple short swords and an 18" kukri on a 1x30. But even so, the Harbor Freight ones just won't do. Tracking isn't good enough, for one, and the power sucks. And if you're going to shell out the 100+ that a good 1x30 will cost (and bear in mind, those have TINY platens, which means if you want to do anything with a relatively wide blade, you're going to gouge your blade on the platen), you might as well get the 2x42 or 2x48 if you can find one. Sure, it can be done on a 1x30. But the 2x42 is a much better investment.
Better just to pick up some files and dispense with the grinder entirely if you're not sure you're going to like it, in my opinion, than to buy a cheap 1x30. The 1x30 is just going to be a waste of money if you decide you're going to stick with it, and entirely too much money if you decide you're not. And the drill press is worlds better than some cheap hand drill. That's a recipe for injury, IMO.
And even if you're just going to go the cheapest route, there's still a lot of associated expenses that a person just starting out won't have considered. You notice safety gear isn't on anyone's list but mine, for instance. And it really does pay to get some decent safety gear. That's gonna cost at least 50 bucks all told, most likely, even if he buys harbor freight gear (I got HF ear protection, for instance, at only a couple bucks, while a respirator there is like 17). Shop aprons aren't cheap, and neither are new pants if he burns a hole in his like I did. Steel costs around 15 dollars for 4 feet at Aldo, which isn't bad, but then, you're gonna pay 15-20 for shipping. Belts will cost 50-300 dollars, depending on how well he wants to kit out, if he's gonna buy a belt grinder. Epoxy is going to cost around 20-30 if he buys in bulk, or more than that if he buys the smaller ones in the "let's just try it out" mindset. Pin stock will probably add another few bucks, maybe 30ish more if he buys enough to make several knives (which he will, unless he finds he doesn't like it after the first one). Handle material can cost a bundle too, unless you've got a really good source of cheap or free stuff. A good hacksaw and blade is what, 50 more dollars? Call it 50-150 more for the drill press. Maybe 10 for a set of cheapo drill bits. More if he wants good ones that won't get ruined after a couple blades, and he doesn't know how to sharpen them. What about sheaths? Are all the blades just going to lack sheaths? If he's making fixed blades, which he will with limited tooling, he won't be able to carry the blades. Then there's the HT expenses; either in tooling, or in shipping them out and paying the fees (per blade). That adds up too. So yeah, at the end of the day, if you try to go the cheapo route, you're gonna find you're going to have spent pretty darn close to 1000 dollars, most of which will wear out pretty quickly because you bought cheap stuff instead of buying quality to start. So you really only "save" money if you end up not sticking with it. If you are pretty sure you're going to like it, you can get to using good tools that you'll be happy with much faster if you just cut to the chase.
So no offense to those of you giving short lists, but that's just not going to cut it. It's not a realistic depiction of all of the costs associated with starting up with knifemaking. The car racing analogy isn't really accurate, because the costs just aren't even in the same ballpark. Heck, it's not even the same sport, so to speak.
Here's how it could pan out, in my eyes:
1. You aren't sure you're going to like it. You buy the minimum possible amount of stuff including a cheap 1x30 (which, as above, ends up totalling at least 500, assuming you do it as cheaply as possible, with pretty much no power tools at all) but likely closer to 1000 dollars when you've made several knives). You discover that it's a pain, especially fighting the gouge marks and poor power from the cheap 1x30 you bought. You call it quits. You're only out a grand, which you could have spent buying several knives that you actually liked. Also, you have a tough time selling off your equipment because it's heavily used, and really low quality, so nobody wants to buy it.
2. You aren't sure you like it. You buy the minimum possible amount of stuff, including a cheap 1x30. You spend around 500 to 1000 dollars to make several knives. Despite the flaws with the equipment, which have become readily obvious to you, you decide you really like making knives, and that it's incredibly satisfying to make your own blades. You learn something new with every one, and you're sure you're going to stick with it. You decide you're going to upgrade your tooling so you don't have to fight issues like finding out that you can't get a good finish with your equipment because belt tracking is bad, and the platen too small, especially if you want to learn anything about convex grinds, which require a slack belt area. You wish you'd just purchased a better grinder, because you end up buying it anyways, and then never use the old one. What a waste. It takes you several more weeks/months/years to save up for the better tooling than it would have otherwise, and you end up with a bunch of old machinery cluttering up your shop. (This is the way that I chose to do it, by the way).
3. You buy better quality equipment to start. You have a much higher initial outlay, but you can make knives more quickly, and end up with a much higher quality product. Although you'd think you'd be more likely to like making knives this way, you still don't. Unfortunately, you're out a good amount of money from investing in higher quality tools, BUT, they're higher quality tools, and thus easier to sell to people who DO want to get into knifemaking, or just need a decent tool and are looking to upgrade. You recoup a fair amount of your investment, and you're in about the same position you would have been if you had purchased cheap stuff.
4. You are very sure you're going to love it, so you buy good quality equipment. You have a higher initial outlay, but you've got good quality equipment (maybe you even bought a real knifemaking grinder that's variable speed), and so you're not as limited by your equipment, so you can learn more than you would have been able to otherwise. You discover that you love it. You thank your lucky stars you didn't buy crappy stuff, since you've got good tools that you can actually make use of in your new hobby, and you don't find the burning need to upgrade soon after you discovered that you really ARE going to stick with it. You make lots of knives, and have a blast doing it.