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Power amp and a pre-amp are the basics that you need to get started. If you want some effects (delay, chorus, etc) you'll want to get an effects processor. I would recommend that you get a power conditioner, but it's not necessary. Just makes plugging everything in easier, and helps to regulate the voltage going to all of the units in the rack.
Here are a few budget rack gear suggestions. I haven't used all of these, but you could get your feet wet without spending a fortune. I suggest finding a good, reliable power amp as the basis for any rack rig, as you can usually find used preamps for cheap any day of the week on eBay.
ADA MP-1
Peavey Rockmaster
ART DST-4
ART SGX
Rocktron Ganiac 2
Behringer V-Amp Pro
Prices tend to fluctuate a LOT on the power amps. There are always Peavey Classics on eBay, and if you are OK with mono instead of stereo, a Classic 60 or 120 can probably be had for right around $200. All but the Classic 50/50 are 3U units with rear volume control; the 50/50 is a 2U model with front volume, presence and resonance. I am using 60 and 50/50 models live, and an old Carvin T100 for recording.
Since you are trying to keep costs down and seem to have realistic expectations, you might get the most mileage out of the ART or Behringer preamps that have built-in effects. The ART DST-4 is of particular note because it has a tube clean channel, solid state distortions, and effects that can be all be controlled with either a basic two-button footswitch OR via MIDI. I use the DST-4 for recording lead tracks, and a Peavey Rockmaster (tube) for rhythm parts.
There are some other neat rack products out there that combine multiple functions in a single unit. I use the Furman PL-Tuner, which is a power conditioner and rack tuner in one. I also have a Sabine RT-series tuner that can act as an A/B switcher. If you are in need of noise reduction, old Rocktron Hush II units are going for next to nothing. I picked up a two-channel IICX for $80 that makes my Rockmaster's cranked Ultra channel dead quiet.
You can get started with nothing more than a Tube Works RT1200R. You can usually find them for about $200...it's a tube preamp with a 100-watt solid-state power amp, two footswitchable channels. I have one in my rack along with a tuner and power conditioner just in case my THD head ever takes a dump mid-show. It takes up two rack spaces.
Then, grab a Carvin 8-space rack for your future expansions plans! You're looking at about $350 tops for that setup. Oh, and you'll need some speakers.
You can get started with nothing more than a Tube Works RT1200R. You can usually find them for about $200...it's a tube preamp with a 100-watt solid-state power amp, two footswitchable channels. I have one in my rack along with a tuner and power conditioner just in case my THD head ever takes a dump mid-show. It takes up two rack spaces.
Then, grab a Carvin 8-space rack for your future expansions plans! You're looking at about $350 tops for that setup. Oh, and you'll need some speakers.
Tube Works RT1200r... is that genz benz? are they new or used for 200.00?
Guitars... Rhoads RX10D Amp... Pioneer Effects... Boss ME-20
What Norton said. Best bang for the buck you're going to find, and a very giggable rig. The Mosvalve power amps don't sound quite as good as the tube power amps, but they are about 80% there and weigh about 1/3rd as much... you'd be surprised how quickly weight adds up on a rack setup. I have a Randall RM4 pre, Randall RT 2/50 power, G-major for effects and Furman PL8 for power distribution, and it weighs around 100 pounds or so, or feels like it.
I've used Alesis poweramps in my rack setup with great results - they're cheap, DEPENDABLE, and sound very "musical". The best I've used so far is the RA-100. It's not really a dedicated guitar/instrument poweramp by any means, but it's voiced right, SUPER quiet (no humming, etc.), LOUD @ 100 watts/channel into 4 ohms (or 76 @ 8 ohms). Easily found for $90-125.
Incidentally, since I got my Rectoverb, I have a rack setup no longer in use... I'd certainly hook you up with a really cool/easy to use preamp if nothing else. Better than the POD IMHO - and I have one of those too, but I'm keeping it around.
Tube Works RT1200r... is that genz benz? are they new or used for 200.00?
Hey, sorry it took me so long! That's used, and it's not really Genz-Benz branded, though I believe it was made by the same people. I don't think you can find any Tube Works stuff new anymore, unless they're still doing a pedal here and there.
They also made a power amp called the MV962. Can't remember the specs on it, but I had one and it worked pretty well. Also cheap!
The ADA MP1 is budget friendly and IMO, still the best metal preamp ever. When paired up with a BBE and tube power, it really doesn't get any better (just different). I have had most of the well known high end preamps in my rig at one time or another, but I always go back to the ADA.
If you start with an ADA and a cheap power amp, even if its solid state, and a budget effects processor (Alesis Quadraverb units are great sounding and very affordable, as is alot of the ART gear). You can then upgrade individual components as your budget allows.
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