Red ball, man - more bouncy, much more the thing when you're starting out - faster, which sounds harder but actually means you have longer to get to it.

I haven't played for years, but had a Wilson racket that served (oh ho) me well - and they seem to have come down in price since then, so I'm sure you'd get something pretty serviceable even for £20-30, but obviously I'm happy for someone to disagree completely with me.

Edit - forgot about the blue ball http://squashclub.org/main/e-lessons/lessons/beginner_lessons/lesson1.shtml. Still, the red would probably do pretty well too.

Hmm - not something I ever used, nor was it ever used at school where a lot of squash was played (that would be in the 80s, mind). I suspect that's a modern health and safety type thing, and I'd file it under "potentially useful but, really, unlikely to be needed". Being hit in the eye by a squash ball is really going to hurt and perhaps do damage, but if you're paying attention and not facing your opponent as they swing, you're unlikely to cop it; once the ball's come off a wall it's really not travelling quickly enough to hurt much.

I'm lazy, so I use reds. I've been hit by my mate's racquet far more often than by the ball, so I wouldn't worry about eye protectors.

£20 will easily get you a perfectly serviceable racquet.

I'd choose Jahinger Khan if I were you.