We where just talking about the lights in another thread. http://www.thephotoforum.com/forum/showthread.php?t=59505
It all comes down to budget really. You can go dirt cheap with working lights from Home Depot and pizza boxes for reflectors or thousands of $.
Check out B&H, Adorama, Alien Bees for lighting kits and backgrounds.
there is no simple answer to the home studio question, if you intend to have wind machines, and models mooving, hair flying etc you need strobes, to freeze motion, historically some of the best periods of portrature were achieved with hot lights (continuos light) everything was intended: shadows and highlights precise, frankly more easily achived with continuos lights, that the photographer can see. Granted its all made easier with digital in that you can experiment and see results imidiately. A rich source for continuos hot and cool lights(which utilize less power and don't heat up the studio)and these are also far less expensive than strobes here is a link to a website that offers these kind of lights. http://alzodigital.com/index.html