The set up I usually use (Canon Xsi 10.1 MP + macro lens + filter + macro ring flash or zoom lens) is about US $2K but I think I've gotten some very nice pics with my Sony CyberShot 7 MP with Zeiss lens - a point and shoot - that I bought for around $200.00.
Practice (and good lighting!) more than anything though is the most important thing. I have a nice camera and equipment because my husband loves me a lot.
If it were just me doing the equipping, I'd be using the Sony exclusively!
Part of what my husband does involves evaluating cameras, and the reason he got me the one he did is because it has the best options and performance. In his opinion, to get a better one, you'd have to pay much, much more.