Everyone seems to be giving good advice and the most acurate is the starter kits are not worth the price. With hind sight here is the direction I would go if just starting out.
Go to WoodnWhimsies
http://www.woodnwhimsies.com
Get the following:
Universal Pen Barrel Trimming Kit
Maxi-Mandrel #1 OR #2 morse taper
Pen Kits:
Lee gives good advise on the cigar. But I would pick up both cigar and slim lines. Cigars are $3.39 and the Slims are $1.79. Get the bushings for both and they are only $3.00. You can get the 7mm and 10mm drill bits from them if you want.
Glue and Finish:
I would get a bottle of thick CA for gluing in the tubes in the blanks. This is a little more forgiving and allows you a tad more time than the thin does. Friction polish is an easy way to start, but if you stick with this you will soon learn that is not the best finish by any means. PM me with your address and I will send you a mostly full bottle that I no longer use. I also have extra 7mm and 10mm bits I can throw in.
Sanding:
Buy quality sand paper as there is a huge difference. Norton is one of the better brands and is made in Canada no China. Buy 220, 320, 400 and 600. Cut them in 1" wide strips and this will last you quite some time. Also pick up a pack of the Micro Mesh as suggested, also available at the web site I gave you. Cut the pieces in two and they will last a long time and can be cleaned with soap, water and a tooth brush. Remember to sand on slow speeds as heat will be your enemy.
Blanks can be obtained most anywhere and there is a huge difference in quality. You want dry wood and blanks that are not full of checks and cracks. I can send you a few good starter pieces. I am rather biased but when you get ready for some really nice looking burls look for one of our member that goes by n4631x. Nolan has some of the best exotics around.
Now these are not the best kits around, but they are good and you can sell them with no worries. Several of us sell these kits. I would stay away from the gold kits as the plating can wear off. Stick with the Rhodium and Black Ti. When you are ready to try something new, you will have enough knowledge to decide what is next for you. Most importantly, ready through the forum. The information on this site cannot be bought in a book of CD.
Good luck and don't forget to PM me with your mailing address.
Mike & Linda