Sorry for the Windows developers out there, this solution is for Macs only.
This set of applications accounts for: Usability Testing, Screen Capture (Video and Still), Version Control, Task Lists, Bug Tracking, a Developer IDE, a Web Server, A Blog, Shared Doc Editing on the Web, Team and individual Chat, Email, Databases and Continuous Integration. This does assume your team members provide their own machines, and one person has a spare old computer to be the Source Repository and Web Server. All for under $200 bucks.
Usability
Silverback
Licenses = 3 x $49.95
"Spontaneous, unobtrusive usability testing software for designers and developers."
Source Control Server and Clients (multiple options)
Subversion = Free
Subversion is an open source version control system.
Versions (Currently in Beta) = Free
Versions provides a pleasant work with Subversion on your Mac.
Diffly = Free
"Diffly is a tool for exploring Subversion working copies. It shows all files with changes and, clicking on a file, shows a highlighted view of the changes for that file. When you are ready to commit Diffly makes it easy to select the files you want to check-in and assemble a useful commit message."
Bug/Feature/Defect Tracking (multiple options)
Bugzilla = Free
Bugzilla is a "Defect Tracking System" or "Bug-Tracking System". Defect Tracking Systems allow individual or groups of developers to keep track of outstanding bugs in their product effectively. Most commercial defect-tracking software vendors charge enormous licensing fees.
Trac = Free
Trac is an enhanced wiki and issue tracking system for software development projects.
Database Server & Clients
MySQL = Free
CocoaMySQL = Free
Web Server
Apache = Free
Development and Build Tools
XCode = Free
CruiseControl = Free
CruiseControl is a framework for a continuous build process. It includes, but is not limited to, plugins for email notification, Ant, and various source control tools. A web interface is provided to view the details of the current and previous builds.
Collaboration Tools
Writeboard = Free
Ta-da List = Free
Campfire Chat for 4 users = Free
WordPress = Free
"WordPress is a state-of-the-art publishing platform with a focus on aesthetics, web standards, and usability. WordPress is both free and priceless at the same time."
Gmail = Free
"Gmail is a new kind of webmail, built on the idea that email can be more intuitive, efficient, and useful."
Screen Capture (Video / Still)
Jing = Free
"The concept of Jing is the always-ready program that instantly captures and shares images and video…from your computer to anywhere."
Lots of great responses:
TeamCity [Yo|||]
Skype [Eric DeLabar]
FogBugz [chakrit]
IChatAV and Screen Sharing (built-in to OS) [amrox]
Google Docs [amrox]
You've got most of it covered.
I always add space, time and money for 2 more things you might consider strange.
A machine set up just like the average user. No development or debugging tools installed. Make it look like someone just bought it from the Apple store. I do image switching but I've know people who swear by switching to an external boot drive.
Also include a 'free' lunch for a virgin. This is someone to come in and test your program that is NOT a developer and doesn't know squat about your software. You might have to do this more than once but don't ever use the same person again.
As an added note, make very sure the 'free' applications and web sites you use are truly free, not just free for personal use!
Good luck on your project!
Collaboration Tools
Skype = Free - If you can't work face-to-face a tool like Skype can get you pretty close for no cost assuming everybody already has broadband. The mac client works great and since most modern macs have a camera already you should be mostly set.
Consider hudson as a CI server
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