Didn't wanna post earlier because I didn't know if one of my LFS was that much cheaper but it seems so. One of the LFS in my area sells a complete 28G nano kit that is reef ready.. HQI light, 30lbs live rock, sand, stand and water for $499.
That being said, I have a 29G reef and after 5 years I have spent over $13,000 on it. That is not a typo.. a lot of the money was spent learning lessons the hard way.. buying crap lights and other equipment.. only to have to buy the better quality stuff soon after. Same goes with corals. Lots of mistakes in the learning process. If I were to setup my tank now brand new with all the fish and corals I have it would run around $2000.. so I have spent $11,000 just in the learning process.