Like a lot of cats on here, I started doing beats in software. It was like, Hammerhead or something real small where it didn't take forever to download on my frickin dialup connection. Then it was all kinds of software snagged on Kazaa or wherever, Sound Forge and FruityLoops and eventually Reason seein their way onto my hard drive. I still love using some of the neat little BS programs you can get for free (legally) like this one called DrumSyn for coming up with synthesized rhythm and effect sounds.
My first piece of hardware (not including a shitty Numark mixer with a worn out crossfader and a couple low-end Numark tables I got ripped off on) was a Roland TR-505. That was a boring-ass machine for someone who wanted tweakability and decent real-time recording. Still messed with it for like a month and resold it for profit. Next up was my Korg ES-1. This was the piece that had me falling in love with hardware production. It featured a 16-step sequencer like the TR boxes, but you could load and tweak sounds, sample (!) and record in real time, then add effects. Sweet for the price. (picked mine up new for 500, they still go for 400 new)
After the ES-1 I actually started recording my sounds, collabed with a few people on some mostly shitty tracks (it was experience) and started adding to my gear supply, always learning more about how things work together.
Gear I've had and discarded since then includes a cheesy keyboard controller (I can't even remember the name) that was missing it's adapter and overloaded when I used the only supplies I could find for it, a Boss SP-505 and DR-202 (was a cool piece, just not beefy enough esp. the outs), a Roland MC-303, a Korg EA-1 (a nice simple tweakbox, wouldn't mind having one again) and a Boss BR-8 multitrack.
Gear I've kept is the ES-1, my MPC (still the main workhorse, though sometimes I trigger sounds from the ES-1 or elsewhere) an s5000 and my Korg Karma. I now record to a Yamaha AW16G but am looking to move into DAW-based recording and am eyeing a Roland mixer/soundbox kit that runs 800 bucks and has flying faders. *drool* Hey if anybody's interested in the Yamaha box, get at me!! It's eBay meat if nobody get's hold of me.
As soon as I get a piece of hardware, I dig in, latch on and don't let go. Every beat I make, whether it was put together 2 years ago (about when I started) or lastnight, I love. That's not to say they'd all be playable for anybody, but I do my shit for me. When I make stuff for other people that's a different story, but haven't had a lot of that come around lately.
Lot of typing, I guess, huh.
Oh, and by the way, you can pick up DrumSynth at
http://www.mda-vst.com/ if you're interested.
-tank.