Welcome to MEM (Model Engine Maker) forum Jon.
It's a great place to hang out with friendly folks and lots of good advice.
I concur with Tony that the Elmer's #25 engine is a great engine to start with. It was the 2nd engine I built after getting started on this wonderful machining journey about a year ago.
I built an even simpler engine for my first engine, as documented in this thread:
http://www.modelenginemaker.com/index.php/topic,5886.0.htmlGood luck on your mill and lathe search. I'll be following along. I'm sure that it's been mentioned that no matter what equipment you obtain, be sure and budget a lot of money for tooling. Some is equipment specific and some more general like drill bits, mills, measuring devices, etc. Whoever said that you need to plan on spending as much on tooling as you do on your equipment must of been a real optimist. It's easy to spend way more than that.
That said, by starting with simpler projects, a person doesn't need as much tooling to be successful. It can be acquired as your projects get more complicated.
Jim