I need to know precisely what I need to spend my money on in order to get this started.

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Sorry if I'm not clear in what I'm saying, but I need to know exactly what materials I'll have to buy to introduce myself and my friends to dnd. We have no way to get anyone else to show us how, but I've purchased the red box. We have yet to meet up to play this, but we have only one opportunity on one day and have to make the most of it. This is why I'm considering purchasing some other materials. The red box doesnt look like it'll give us enough to play through. My first inclination is to go the heroes of essentials to add classes and race for us to use. I'm also interested in purchasing the neverwinter campaign setting, but I don't know if we'll be high enough level to begin any of the quests there. I need to know if i have to buy the 4e core player handbook or will i be able to get the ball rolling with the red box, the heroes essentials for classes and then a campaign setting. I dont have more than 50 dollars I can spend on materials at this point and all I have is the red box. TL;DR DND HELP NO MONEY HAVE RED BOX DO I NEED MORE IF SO WHAT?
The best bang for your buck would be the D&D Insider subscription, the online compendium has access to collected information from most everything they've published and you'd get access to Dungeon Magazine which has a lot of adventures to choose from, Keep on the Shadowfell is a free level 1 adventure too.

In keeping with low cost and utility you could get a dry erase grid, I got one from chessex, Monster Vault is also pretty great, it has a level 4 adventure, a bunch of monster stat blocks and most importantly, lots of tokens.
The best bang for your buck would be the D&D Insider subscription, the online compendium has access to collected information from most everything they've published and you'd get access to Dungeon Magazine which has a lot of adventures to choose from, Keep on the Shadowfell is a free level 1 adventure too.

In keeping with low cost and utility you could get a dry erase grid, I got one from chessex, Monster Vault is also pretty great, it has a level 4 adventure, a bunch of monster stat blocks and most importantly, lots of tokens.

I would like to get the DDI subscription in the near future, but for now I'm looking for storebought items that would be easier to pass around with my friends. I do think you're spot on with the grid-board idea. I guess a more pressing question to ask would be whether I would be able to figure our way with the red box, a campaign set and the heroes of sets, or will we find ourselves up a creek without a handbook?
Also, will the redbox leave us at a level high enough to begin a campaign set, or will we find ourselves screwed and surrounded by pizza soda and a bad investment? I'm basically studying all of the necessary materials, and then crashing a group of friends through a tutorial and an adventure in one long sitting. We're all going separate ways for a while, and just wanted to do this before we split for sophomore year. I have several friends I could continue playing dnd with up at school and will definitely look into that subscription but for now I'll go off of whatever books I can use to get us through one good roleplay tutorial and proper early campaign
The two essentials 'Heroes' books are cheaper than the PHB, you could start with one or both of them. I've never run the red box adventure but its supposed to get the party to level 2... it looks like it has 7 encounters, which is more than enough unless you pulled a massive marathon session I don't see you getting through the whole thing.

The Rules Compendium is often suggested too, and there's the DM Kit which has a well-regarded adventure that picks up at level 2 and could easily follow up the Red Box adventure. The DM Kit also has a lot of tokens, some maps, and a DM book.
Perhaps I could go with 1 of the heroes sets, and pick up the dm kit. Do you know of any items to progress to level 3 for a campaign book?
I can see that the red box might be more than sufficient for one session, but after school starts I'd like to start a regular campaign from the neverwinter set with my school friends. I want to spend as little cash as possible for the time being, but I need to bridge that level gap. To clarify my position now, I'm thinking of going for the dm kit and 1 heroes book then later get a campaign, or if possible skip from red box to a campaign. Do you know of an extremely cheap way to bridge that gap instead of going for the rather 'spensive dm kit? Btw thanks for the help here.

Oh, I know you said you werent familiar with the redbox, but do you know if the changed classes in one of the heroes sets would be totally incompatible and a waste of time until I get to a different setup?
The four classes that one creates with the Red Box are the Slayer, the Warpriest (either Storm or Sun Domain), the Mage, and the Thief; these are classes found in "Heroes of the Fallen Lands" rather than "Heroes of the Forgotten Kingdoms".  There are a few powers available in the Red Box that aren't in the "Heroes of the Fallen Lands", most notably the Mage daily spell "Slimy Transmutation" (a level 1 character can theoretically turn Orcus into a toad).
 
The Red Box Slayer uses CON for bonus damage, the HotFL uses DEX.  

Keep an eye on the Ability Scores that the Player's Book assigns; the array it uses is 16,14,13,12,11,10.  It has the player assign the character's CON score and primary ability score, based on the character's class, then tells the player to assign the remaining scores to the rest of the abilities.  But it sometimes doesn't take into account a character's racial bonus.  For example, for a slayer, it assigns a STR score of 18 (or 16 if an elf or halfling), and a CON score of 14, regardless of race.  Later, when it tells the player the remaining scores available to distribute to abilities, it says 13,12,11, and 10.  For a dwarf (and possibly the halfling), though, the remaining scores would actually be 14,13, 11, and 10, since the Dwarf gets a +2 racial bonus to CON.

The adventure in the Red Box is "The Twisting Halls", and is fairly good.  There is a "puzzle room" involving chess, an ability to try to outwit a dragon (imagine that--an actual dragon in a dungeon in a D&D starter kit).  There are also two or three adventure hooks provided for crafting your own adventures.  It's not a cakewalk--I TPK'd my kids' party when I played it with them.

If you can find it, buy the Monster Vault book (I'm pretty sure I've seen it sold apart from the MV boxed set), the Rules Compendium, and Heroes of the Fallen Lands.  That gets you monsters, DM-style rules, and player's characters. 
Perhaps I could go with 1 of the heroes sets, and pick up the dm kit. Do you know of any items to progress to level 3 for a campaign book?
I can see that the red box might be more than sufficient for one session, but after school starts I'd like to start a regular campaign from the neverwinter set with my school friends. I want to spend as little cash as possible for the time being, but I need to bridge that level gap. To clarify my position now, I'm thinking of going for the dm kit and 1 heroes book then later get a campaign, or if possible skip from red box to a campaign. Do you know of an extremely cheap way to bridge that gap instead of going for the rather 'spensive dm kit? Btw thanks for the help here.

Oh, I know you said you werent familiar with the redbox, but do you know if the changed classes in one of the heroes sets would be totally incompatible and a waste of time until I get to a different setup?



Honestly, just the redbox alone should be enough to get you started.
One you finish it, just get a ddi subscription, and have everyone in the gaming group split the cost. 

As for other books, all of the info in the DM Kit is in the Rules Compendium, i'd recommend just getting the RC and saving cash; the only reason to buy the DM kit is for the monster tokens (which are cool, but unnecessary)

And i have to put in a word for extra dice. Seriously, you can never have too many dice.
For your first session I'd do this:

1. Get DDI+RC+more dice
2. Make pre-gen characters using the DDI character builder so you don't have to spend time on that during the session
3. Run the Twisted Halls from the Red Box 

The Neverwinter Campaign book is pretty decent and I'd recommend getting it if it appeals to you.  Bear in mind that it isn't a ready-made campaign though - you'll need to create your own adventures or adapt them from other sources.  No reason you couldn't start a campaign in that setting from Level 1 and even adapt the Twisted Halls to serve as the first adventure. 
i'll definitely put the RC at the top of my list. I'll hold off on the sub until i've got a consistent group going up at school. The reason I'm buying the Neverwinter stting is to cut my teeth as a dm. combined with the rc, fallen heroes, and a handful of generic filler monsters I should be able to get started creating encounters and adventures to lead into a full plotline for the neverwinter setting.
Btw thanks to everyone for your replies. Dnd is surprisingly hard to get into for such a famous hobby. Even with the red box, it's still hard to find a solid entry point into roleplaying games.

If you continue on, you'll want the Monster Vault box set, not just for the book, but for the loads of tokens that come with it and the adventure/maps.


If you play through Twisted Halls that can lead to Reavers of Harkenwold that comes with the DM's Kit which continues with Cairn of the Winter King that comes with the Monster Vault.


Did I mention the zounds of tokens, all with regular and bloodied side, pictures that match those in the MV.  It's really one of the best value products out there.  


DM's kit is good too: Book, DM screen, tokens, maps, adventure.


TjD

Btw thanks to everyone for your replies. Dnd is surprisingly hard to get into for such a famous hobby. Even with the red box, it's still hard to find a solid entry point into roleplaying games.



100% agree with this, and it's disappointing that it's been like this for the past ~3-4 years.  Pathfinder, on the other hand, has an amazing beginner box...

I still strongly recommend a DDI sub - even if you just get 1 month and cancel it there are loads of PDF adventures that you can download and it'll help you get started with character sheets etc.

Another resource you might find handy for your first sessionis this one:

dungeonsmaster.com/pre-generated-charact...

The Season 3 and Season 4 pre-gens are from the two Heroes of ... books.
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