DIY Web "Television" Station?

randomkind asks: "Media production can be quite a bit of fun. I think it would be extremely cool to run a television station, or at least a series of television-like shows. Luckily, the web offers an alternative vehicle for publication than the standard media-mogul run cable television providers. That is why I'm looking in to creating a website that would, in essence, be a completely free television station online, with pre-recording (and sometimes live) streaming video feeds and a regular programming schedule. Think of it either as the visual analog of an internet radio station, or a very glorified webcam. My question is: Where to start? What kind of digital recording equipment is suggested? What kind of editing and effects software is needed? What kind of content delivery method is suggested (ie Real, or some other streaming video plugin)? Any special hardware requirements? Is there anything else that I ought to know about creating and running something of this sort?"

"I am looking for decent quality, but cheap solutions. I have a few thousand dollars to invest, and will have more over time, but my friends and I are solely backing this project with cash from our pockets. I've got a decent amount of working space for a production studio reserved, and enough manpower to provide, at least initially, a few hours of braodcasting a day. I've got an overflowing abundance of ideas, and lots of enthusiasm. So, where do I go from here?"