I've brewed 6 batches of been since January, all have been from extract kits. Extract kits are great, they make great beer, and cut down on a few complex steps. I've found it helpful to start with extract kits, it's good to cut down on the variables at first. Lord knows enough can go wrong in the beer making process, why start complex and get frustrated? Plus, all grain batches require a few more items, start up cost can be minimized by starting with extract kits. Once you are ready to get more technical and get a taste of what a all-grain brewing is all about, pick up a
Partial Mash Kit. It uses a mashing process and some extract, you'll get a feel for what all-grain brewing is all about. Northern Brewers Speckled Heifer is a good partial mash kit.
I'm at the point where I'm ready to make the switch to all-grain, so the first thing I needed was a Mash Tun.