scotts premium potting soil is one of the better options to get your feet wet.
it's very VERY light on nutes, and SUPER cheap. around here a 1.5square foot bag costs 2 dollars. compared to 21 dollars for the same bag of Fox Farms Ocean's Forest.
and for nutes i've done both, used cheap and expensive and for now i'm sticking to the expensive ones. my plants look healthier, and i've had a lot less problems using the fox farm line, than when i was using cheap chemical ones....
anyways,
yeah, CFL's give off most light off the sides. but if you get them under a reflector, then you're cool. if not, then put them on the side. there's also some clever beer can DYI reflectors if you're interested. i didn't bother b/c i didn't want to cut myself, you're free to try if you wish.
now, for the smell.
have you thought about this???
and controlling ph. you'll need those drops, or an electronic ph meter. it's gonna be at least 10 bucks....