I am not a believer in distortion pedals - too friggin' metal and rawk. Overdrive your amp - that's the only distortion you need. Or loosen a tube like Link Wray. Slash your speaker cone with a razor blade (that's how Dave Davies did it and I swear by it but I have several amps) and it's not that expensive to put in a new cone. Get an amp with tremolo or, most importantly, REVERB! DON'T GET A REVERB PEDAL!! Nothing sounds worse... A tremolo unit is ok if you can't get an amp with both but reverb pedals are the seed of Stan's nutsack. Nobody in the 50s or 60s were using pedals and you don't need 'em. Get a fuzz for solos or single note riffs but distortion pedals - bleh. People rely WAY too much in pedals these days (that and fucking modeling amps - LOSER) and they don't sound organic - they sound fake and sterile and shitty (and not in the way you want it to sound shitty). Cheap guitars aren't really necessary but they will work well. My main guitar these days is a Kent Americana.
Listen to records you like and learn the songs and then STEAL THEM! You'll learn everything you need to know. Lessons, books, etc are overrated and a waste of money.