The best kayak to buy is the one that is going to get you out on the water. It doesn't have to look good, be super light, or even last you a lifetime. I own a sea kayaking company in Alaska, and live in one of the best kayaking destinations in the world. I see a lot of nice kayaks stored at people's homes, but the best ones are the ones that actually float!

My advice would be to go to your nearest kayak symposium, retail shop on the water, gear swap, or kayak club. Paddle as many as you can while you're learning what suits you best. Then shop around for a used one with the same or similar specifications (length/width, material, hull design, storage capacity....) There is a huge market for used kayaks anyway. After you have a little more experience under your belt, you can always sell it and buy another used boat!

Or if you have some time on your hands, buy yourself a wooden kayak kit and build it! It's not hard, it's cheaper than a new boat, and after you build it, you'll always know how to repair it.

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Tight Budget...
Agree with local retailers etc to some degree. REI serves sea kayaking but have zilch in the way of whitewater goods.
You really need to decide on one whitewater kayaking or sea kayaking. They are not one in the same and the gear has been specifically designed for each sport for your personal safety and comfort.

I know about nill in respect to the sea kayaking.

If you want rivers...you've got two choices, big water and creeks or play boating. I would recommend startign in a larger more forgiving boat if you head to the river. Start with www.americanwhitewater.org and then search for local clubs in your state etc also
professorpaddle.com if you happen to be in the PNW it is a great resource for those just starting. Get with people in a club or on a forum. most kayaker are pretty strraight forward and willing to help anyone learn that wants to, most will help with basics just because but good cold beer is always a good form of payment. you do need a ride back to the top of the river afterall right?
Check craigslist.org in your area and serach key words in sporting goods, kayak, paddle, helmet, life jacket, sprayskirt, roof rack. there are always people dumping stuff that dont use it anymore.
Also, again, the clubs, though some of their rules and memebers are at time quarky, as we all are, they are still the best resource. You might meet somone at a club function who's wife came foe the night finds out you want to learn, knows the husband has twenty kayaks and only paddles two of them anymore...just saying...expect some substancial upfront cost with little costs other tahn travel once you get into the scene.

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A Kayak that will handle the sea and whitewater is an inflatable by Aire from Idaho.
Here is one example that can be used in various conditions:
http://www.aire.com/aire/products/default.aspx?id=196
The nice thing about this kayak is that you can travel with it as they make a bag for traveling with it where you can carry a take apart paddle, pump for inflation, kayak, life vest, other accessories.

I have had one of these for years and they work great for rivers and flat water.

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Tight budget, varying conditions, just starting. Sounds like the perfect mix for a sit on top. Light enough that you can get it in the water easily (you'll just do it more), stable so you can get a feel for being out there, tough, cheep (comparable)and easy to move via craigslist of something similar once you figure out where you actually spend most of your time. Give it a season, if you get enough water time in you'll know what the next one should be.

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The absolute best place to go is the US Whitewater Center in Charlotte, NC. It has everything and all the different skill levels.

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