I would say a used 350d for about £150 and if possible the 85mm 1.8 cause it's one of the best action lens out there and a used one goes about £240. about £100 more than your budget but you'll get one of the best action lens available.
You can find info about the umbrellas here
http://strobist.blogspot.com/2006/03/lighting-101-umbrellas.html
But nowadays you can find the 2 in one version
http://www.warehouseexpress.com/product/default.aspx?sku=12393
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