Quality setup and under $500 is near impossible.
Local shop? Start their. You'll need to try on boots anyways as you wont have a clue if something fits well over the internet. And get boots first. They're your first point of contact with your gear and the most important to having a good day.
Board and bindings will follow. Great starting points for bindings are last years K2 Formulas. All the great things of a higher end binding and you should be able to find some 2012's for about $120. For a board look for previous years Flow Era, K2 Raygun, Nitro Pro Series or Rook, or a Salomon Grip. There's others, but that's a good place to start. 153-156
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