Go to the Mudhole site and click on their rod building tips/instructions buttons, or order a catalog and you'll find good instructions in the front of the catalog. As others have suggested, try to figure out how deeply you want to go into the hobby. That will guide you on what to buy initially for tools.
I suggest starting with a kit, and a fairly cheap one at that, and get started on it. That way the design will be OK and you won't have a tremendous investment if you screw it up or never quite catch on. If you are handy with your hands, simple tools, glue and finish handling, are somewhat patient, and have a real desire to build a rod, you will be successful.
After you have done a couple kit rods, you will want to spec your own rod blank, guides, grips, etc, and you will want some more advanced tools. A drying motor setup is really nice, but is optional. Without it you have to hand turn the rod now and then while the epoxy is curing. the quality of the epoxy job done manually is usually not nearly as nice as you will get with a drying motor rig. I made my own from a cheap motor from Ebay. I also built my winding setup out of pine, dowels for the spools, and a thread tensioner (any rod building supply house has them). It really dosn't take that much $ for tools if you are willing to make some of them yourself.
Check out http://www.rodbuilding.org/list.php?2 Check out the library and search the forum for entries on beginning rod building. Buy the book by Tom Kirkman available at Mudhole and other rod building houses. The rodbuilding.org site is all about rods, not rods and baits, so it is better for the rodbuilder.
The guy down the road from you has offerred to help, so take advantage of his offer. There would be no better way to get introduced to the craft than to have an experienced rodbuilder invite you into his shop and go over it with you.