Chris,
Dave's book will provide you w/ lots of good info, read it a couple of times. A couple of thoughts on a car. Given your budget, you should be able to find something serviceable that fits your budget. I would suggest a more 'known' car over something that's a bit obscure. By that, I mean the model of the car, not a specific, individual car. For ITB, there are some good choices that are pretty well known. Any of the eligible VW's are good (hey, I'm a VW guy, that's why I mentioned them first), but for your budget, you're probably looking at an A1 (Rabbit) or A2 (1st gen. Golf) chassis. There are several Honda options as well. Something else you may want to look at is an AW11 (1st gen.) MR2, which was recently moved from ITA to ITB. Not the fastest car out there, but a very fun car to drive, and pretty forgiving. Balance is good, and it's adjustable on all 4 corners.
There are lots of other cars in ITB to choose from, but for someone just getting started, and on a pretty limited budget, I'd suggest something that's a known quantity. There will be plenty of knowledge out there, and a decent source for spares / go-fast stuff.