Man you guys are fast. I was going to update my post with more info, but you beat me.
The memory card is indeed ridiculous. Don't buy it.
A Gold subscription is required for online play, which is the main reason for buying this game. The Xbox Live Starter Pack includes a 3-month Gold subscription and a 60GB hard drive... Amazon had it for $80 for a while, but the price went up, but maybe you can find it elsewhere at that price. A 3-month Gold subscription on Amazon is $20, 12-month is $50.
So for everything new and it will be something like:
Xbox 360 arcade - $200
60GB starter pack - $80 (includes 3-month Gold subscription)
1600 points card - $20
Cable for HDTV - $5 for HDMI, $30 for OEM VGA or Component ($10 for non-OEM)
Or:
Xbox 360 pro - $300 (includes HDD and Component cable)
1600 points card - $20
Gold subscription - $20 / 3-month, $50 / 12-month
Also don't forget Twin Sticks. I don't think fliptopbox will be satisfied with a controller. Assuming you still have some Twin Sticks, the DIY option is basically the cost of a donor Xbox 360 controller. To hire someone to do it will probably be $75 or so (I haven't found anyone to do it... yet... everyone is busy with mods for SF4 controllers).