Yeah that router is ok.. depends on how much your gonna use it and what precision you need. My personal favorite is the Dewalt dw621 simply because it vacums the dust also.. and works great, except it will cost you alot more, but you get what you pay for most of the time. As far as tools go... I'd suggest you read all of the tutorials Brian has on Tools... and make everything you can possible make, there is no need to go out and buy everything, but you'll still need these tools no matter if you buy them or make them.. Here is a breakdown of what you can make and in the process save tons of money. For this post I'll just consentrate on tools to do necks with. These are some of the tools you can build.
Neck Work:
Radius Sanding Blocks: Used to shape the fretboards radius... These cost around 14 dollars and you can learn how to make them from Anthony Setchell article:
http://www.projectguitar.com/tut/radius.htm
Fret Bender: These help you bend the frets to the proper radius before hammering or pressing them in. Brian has a great way of making one for alot cheaper than StewMac's 89 dollar one.
http://www.projectguitar.com/tut/bender.htm
Miter Box: If you ever decide to actually slot your fretboards, you can pick one of these real cheap at Sears or such.. for under 30 dollars you can get a really good one.. It will cost you 70 dollars from STew.
Nut Slotting Files: These cost alot for the good ones.. so to get by cheaper.. buy you a set of feeler guages from a local parts store, and rough up the edges so it acts as a file. They work great and I'm still using them.. lol.. the guages will actually have the sizes already labeled on them.. so no guessing..
Fret Beveling File: They cost about 50 dollars for a good 7" fret beveling file. but once again Brain comes through with a great idea of making your own. Just read near the bottom of this great article for how to's.
http://www.projectguitar.com/tut/fretting.htm
These will get you started in the neck building process... next, guitar body tools!!