I don't post on here much, so forgive me if I'm intruding, but I'll give you the bits of advice that I can.
My suggestion for just starting out is to check out what they have at Harbor Freight. You can find a lot of tools there, may not be the best money can buy, but it will get you started. For $30 you can buy a 1x30 belt grinder. It will come in handy for handles but will work good for beveling your blade. The most expensive part of a belt grinder is buying all the belts. The cost adds up over time. Just my $.02.
I buy things from Harbor Freight somewhat regularly, I agree that you can get by with many products they sell, however, I don't think you should buy many things from them until you know what you need and what you can get away with. If you're on the fence at all about something from them, ask around before you get it.
Also, I wouldn't buy a 1x30 or any other belt sander to grind blades. I say this from personal experience, I started with a 4x36 and recomended them to other folks. It worked better than the first set of files I bought, but that was my fault for buying cheap tools and not knowing how to use them. The small belt sander may be useful for handle materials, just make sure you get one that has a decent slack belt area if you'll use it for such. I think that wasted time is the most expenisve part of a grinder whereas belts are just part of the bill of materials for a knife. Don't waste time trying to save money on belts, you're worth more than they are.
The angle grinder with cutoff wheels and a grinding disc is a cheap and quick way to cut and profile a blade. I would not use it for finish work or grinding, as has already been mentioned, it's just too fast and also too coarse. I would highly recomend buying some good files (please, BUY GOOD FILES) and using these to stock remove your blade until you can afford a belt grinder.
The Coote represents one of the best values out there for someone starting out, I think. If you think you can make one of the grinders in the Goddard book on the cheap, this is also a good alternative. Just remember, you want a real 2x72 belt grinder, don't waste your time on anything else. If you buy a Coote, you will be able to sell it for much of what you paid later on, if you want a KMG or Bader or whatever.
You can use sandpaper and handsand up to whatever you feel is an acceptable finish. Depending on the knife, you might be able to save some finish time by using a random orbital sander to smooth things out.
Just to make it clear, I'm no professional, but I've been hacking away at this knifemaking thing for a few years and this is what I've learned to be true.
There's probably lots more to say, but I'll leave with this note, try very hard to find a maker near you and try to visit him/her. You will learn so much doing and watching and be able to put what you've read into perspective. Who knows, you might even be work in their shop a bit and save your money for the tools you need.