A perrenial question, so I thought I'd share what I currently use. I only recently (as in Jan this year) started proper walking again with mate who was in a similar situation. So at that time we considered that in six months we may give it up as a bad job (although now that looks very unlikely) I went cheap and took advantage of various sales in December as did he, but I'll only cover my stuff here.
So this is the gear I use and you can probably guess which is the newer stuff. Prices are obviously what I paid / should have paid at the time.
Boots - Hi Tec.
Cost about £30 down from £50. They don't have a vibram sole and are nubuck uppers. There are water proof but don't have goretex liners. They're a bit like Hi Tec Journey Lites.
Opinion - Well they've served me well, you have to keep the soles clean but they've remained dry inside even through streams and comfortable even on our very first walk. Not a bad start. Blister count = 0.
Replacement? Not planning to at the moment but if I feel flush probably some scarpa's. If I don't feel flush then I'll look at the Hi-Tec range again.
Walking jacket - Regatta Magnitude III.
Cost about £25, down from £40. Not recommended in snow (I use multiple layers for that) and very cold conditions. Hood built in, no peak though. Pockets all seem waterproof.
Opinion - They've managed very well, despite not having a seperate internal fleece (they're fleece lined instead) they kept me dry in fairly heavy rain, and pretty breathable in warmer weather. You do sweat in hot or very warm weather, but it packs up nicely to stow away.
Replacement? Probably won't. I'll just keep my layers according to conditions. If we do winter walking then maybe re-assess.
High wicking layers. - Trekmate (various lightweight tops)
Cost about £15. Very light weight, nicely breathable tops in short or long sleeve, zip or closed neck.
Opinion - Fantastic, especially for the money, light enough to combine with heavier jackets etc. very breatable IME.
Replacement? Well they get laddered comparatively easily but considering what they're made of that isn't a suprise. Will replace with the same.
Walking Trousers.
Two pairs. One normal utility/combat trouser (about £13), one pair of Craghopper zip off Kiwi's (£25 quid as new (and yes they were as new), thanks ebay).
Opinion - Utility trousers well what can you say, more pockets that you can shake a stick at, comfortable and dry fairly quickly. The Craggies, well not as many pockets (they miss a leg pocket) but a very useful mobile and zip up pockets. Dry very quickly and if I want to scare small children I can convert them into shorts.
Replacement? Will replace both when I need to with Craghoppers.
Approach Shoes. NF Hedgehogs.
Vibram sole, goretex, £75, but I got the store (Blacks) to come down to £65. It helps when they have a competitor next door.
Opinion - Excellent, although my mate has a pair of hi-tec about a tenner cheaper with a vibram soul (and slightly better tread pattern) and I doubt there's much to separate them really.
Replacement? May actually go to the hi-tec when the time comes. Don't expect that to be any time soon though.
Sack. Vango 30+5.
Can't remember exactly, except it was half price and fitted well. Air back for what that's worth and plenty of pockets etc. Bright orange rain cover and some completely waterproof pockets. A 15lt very old reebok for when a pack isn't really required but no point going into that.
Opinion - nice and comfortable and as we day walk only, more than enough space (although inevitably it's getting fuller). No problems with zips, clips or anything.
Replacement? Can't see any need to for a long time, probably get the same make when I do though.
So that's what I use at admittedly the cheap end of the market (my initial gear was about £150 (would have been £2-250 if it wasn't in a sale). But it's given me many hours of safe enjoyment out there and i fully expect many more, which is the main thing.
What do you use and how would you rate it?