Although I've only spent about $30 on applications, I wanted to list the apps, the necessary hardware, and some other favorites I've come to love.
Major Cost Item
$300 iPad 2, refurbished from Smalldog Electronics
$5-$25 Stylus (pen)
Applications (Mac) http://www.apple.com/osx/apps/app-store.html
$15 iPhoto (Standard with Mac)
$7 Analog (in-store)
Fun Apps for (Big) Kids
$2 Action Movie
$2 Comics
$2 Old Booth
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