X3 on starting with hot lights. Look at fluorescent lights initially since they don't suck down the power and it'll give you a run for your money on white balancing (a solid exercise :sombrero: ).
But seriously, constant lights are nice because you can SEE what the light is doing in real time rather than in a split second. Generally for teachings, I bust out a little stuffed animal and a flashlight and shine the light on it. You can do the same, just sit there with your camera in Macro with a couple flashlights and your favorite little figure and go nuts. Below is a photo to highlight what I mean:
IMG_0305 by
expeditionmax, on Flickr
Basically 3 lights, my desk lamp, an old 2AA mini-mag lite and then a fancy LED flashlight. Basically using key, fill and backlighting (its not all backlighting, I've forgotten the name of it and the book that tells me got stolen years ago). Shot with my point and shoot. Granted, I've got a pretty kickin' P&S but still, it is what it is. You'll use the EXACT SAME setup (well, maybe hair light as well) on a human.
Sit there, play with the distance of the light. Understand the shadows, angles and intensities. Once you switch over to strobes, it all translates over. Also I think this current setup will help you with your budget and space issue. You've probably got some flashlights. Get a couple mini-tripods and tape the flashlights to them.
As for actual strobing, when you are ready, start trolling craigslist and yard sales for strobes off of old camera kits. Start picking up decent units for $25~40 bucks a piece. Get about 4 of em and you'll be golden. But I do recommend you have one strobe that'll work with your camera. Sometimes you just gotta go with a hotshoe flash. It sucks, but its good to have something that you can just pop on and just works.
www.flashzebra.com has all the little fittings and fixings to make it all work. Price is good too as is the quality. I've got one of their 15 foot PC sync cords, its about 3 years old. Rarely do I bust it out, but when I do, it works. I've got a couple of their mounts, optical triggers and crap like that. It all just works.
There is a blog, strobist.com that is good for new peoples. But after a while it got repetitive for me. Don't get me wrong, almost everything on that website is nothing but truth and awesomeness but I just started doing my own thing, had my own setup and my own style.