I also know this common afliction as G.A.S... I've been playing now for 24 years and have around 50 guitars, half a dozen amps and all sorts of related gear.... some of which I maybe use once and then leave on a shelf but that's the way it is.

On effects, it depends what you want to achieve and how you play. Live, I have used a PODxt (the 'Live!' version for a pedalboard), and the BOSS GT8 both of which are excellent and easy to dial in your own sounds. Likewise you can download patches from the 'net straight to them, but they are pricey. The Digitech RP50 costs about $75 from memory and is a great place to start to play around in general.

My view is that if you're passionate about something and in it for the long haul, you will only regret buying cheaper kit later so always buy the best you can afford. A PODxt or similar at some $300 may seem expensive but it's cheaper than buying 6 different units on the way :).

As another thought, the Native Instruments Guitar Rig is brilliant if you play in to a computer... I use many of the plugins for recording even now. Worth considering if you play in to a computer soundcard.

Like one of the posters above, I personally prefer individual pedals but obviously that's more expensive. If you are interested in effects in general sign up for the newsletter where a number of articles on effects will shortly be appearing, written by yours truly... I believe one on Wah has already appeared but there are several still to come.