Stop! Don't make the mistake I made. I got a very similar kit and now have a very pointless lump of metal in a drawer. The vice, bobbin holder, scissors and whip finish tool all sucked and have since been replaced. The only thing I still use regularly is the hackle pliers. The bobbin is now only used for very heavy threads, the scissors are fine for cutting mono
The materials where ok but again I replaced the threads with unithread and materials that matched what I wanted to do and rarely touch the kit stuff now. Varnish and thread are cheap.
If you want a cheap but adequate vice to get started then
ROTATABLE REGENT FLY TYING VICE, BRAND NEW, FREE P & P on eBay (end time 23-Aug-10 21:21:45 BST)
is a much better choice.
Find a couple of patterns you want to tie and buy the materials you need for them. Be warned. You will end up with a huge collection of materials over time anyway.
A decent ceramic tipped bobbin holder, a pair of hackle pliers and a pair of fine point scissors should be the only tools required to get started.
If you really want a whip finishing tool then a Martelli style one is the type I'd recommend but you can also use your fingers.
A large sewing needle will suffice as a dubbing needle or take a look in the homemade tools section for more ideas.
Homemade tools.
As for saving money. The cost per fly is lower yes. The initial outlay on materials etc will however seem quite large.
Don't approach tying purely on a cost basis. Just imagine the future. You will be able to add unique variations to patterns rather than sticking to what is available to buy. You can make your own patterns up, experiment and have fun.
Most importantly every fish you catch will be down truely to you. It won't be down to just your casting and strike. It will be the fact you have managed to create something the fish thought good enough to taste instead of just fooling it with Mr Commercial Tyers fluff. That's not to say that Mr Commercials stuff isn't sometimes good, it just isn't as satisfying to fish.