Well, best get a miniDV camera (lots of them under 200 on Ebay - go for Sony, Canon or JVC), & a super-8 camera (Ebay again, under 20 quid), a tripod (a small one from any 2nd-hand camera shop, or Ebay), some dv tapes and film stock, and procure some editing software such as Premiere or Final Cut Pro...
If you hunt around then 400 quid should just about cover all that...
One of the few Brit films to make it into this year's Cannes was a short film shot on super-8 and mini-dv, total cost - 400 quid.
Interview with the guy behind it is *here*.
Hope that helps.
Oh, and buy this book, this book, and probably this book. Oh, and drop out of film school and spend the money on actually making your own films... you learn a lot more that way.
Thanks again.