PSG is probably my primary instrument now. It is extremely challenging, but at the same time extremely facinating. Everytime I sit down and play, I learn something. And it's very addictive.
Stay away from old Fenders and Sidekicks, they are mechanical nightmares. The Carter Starter is a decent ax to get started on, I did. Plus, there's usually a used market for them, and you don't take a bath when you decide to sell/upgrade. ZumSteel makes a good student model, but they are pretty rare. An older single neck GFI can be had for less than $1,000, usually. The Steelguitarforum.com is the best place to buy and sell stuff. They run a pretty tight ship.
Jeff Newman was THE instructor, his material (still available, as posted above) is excellent.
The BEST thing you could do is to find a player to sit down with and jam or take lessons, or whatever. There are so many bad habits to get into because there are so many things happening, it's really good to have someone watch you who knows what they are doing.
Don't expect to be good overnight. It's a journey.