Great post nreel! Lots of good info in there! Just one thing I'd like to clarify, though it may be obvious to most, is that you still have to buy discs to import into hoster. So whether you use use Hoster and a laptop, or CDG players, you will have to get CDs, just that with Hoster, you can leave them at home. One really good mixer/amp that I have used before is this one:
http://www.mbtinternational.com/rms/pm10-400.htm
It has good built-in effects (not the best, but very good) dual 7 band EQs, and decent power, not ALOT of power, but good enough for a decent starter system (200x2). And it's not a bad price either. (Remember the price on the website is LIST it can be had for about $600 I believe) Match this with good quality mics, Shure SM58 or Sennheiser E835 (which are now buy 2 get 1 free) Both have great sound quality, and are very durable. Oh and to save you some trouble later on, get mics WITHOUT a switch! Add some speakers/stands, and then all you have to do is choose whether you want Hoster or CDG players. Even if you do decide on Hoster, I would still get a backup CDG player. CYA, you know...
Then you can always add on more stuff later, wireless mic for KJ (put this at the top of your list once you get the basics), subwoofer(s), external vocal processors, larger amps, bigger/better speakers....the list goes on and on...
One other option that was not mentioned is to get a mixer and self-powered speakers. My preference for this would be Mackie SRM450, EXCELLENT speakers. They might be a bit pricey for a starter system though. I use the unpowered version of this speaker and they have VERY good sound quality.
Any ?s just ask. I know thats alot of info in these two posts. We're here for ya man.
Good Luck,
Flip a.k.a. Mike