G'day Matt
I agree with many of the posters to this thread so far with a Dobsonian as they are easy to use.
IIS, Gum Tree or Ebay (IceTrade (IIS) & Gum Tree especially) usually have some great pick-ups. I personally wouldn't go any lower than a 6" Dob (more if you have the cash) as it won't be long before you finding yourself wanting a much bigger scope.
Alternatively, maybe you could start off with a nice set of binoculars (10 x 50's) and star chart/beginner book. They will fit your budget, easy to use and very portable. I still use a set of Celestron 10 x 50 today
. I also recommend a deck chair for comfortable viewing! It will be important to learn/orientate yourself around the sky first. The views may disappoint (i.e. not what your aiming at first up), but bino's are a great learning tool and something you should keep well after you have bought your first scope! You never know, you or someone you know might already have a set! Bino's are far more common in peoples homes than telescopes, so there is a good chance that one of your relatives may have some (around 10x50 don't go much less than that).
If you are interested in learning about bino's check this link (and the others contained within) for further info:
http://cs.astronomy.com/asy/equipmen...54/427172.aspx
I would definitely join your local Astronomical Society (if you have one) as they usually have loan telescopes and you will get to look at scopes and speak to people before spending a lot of money (maybe when you don't really need to yet, best save up!).
Good luck and welcome
Regards
Gav