Adding this link, as FreestylePhoto is .biz not .com which makes it "hard to find".
http://www.freestylephoto.biz/
They have everything you could possibley need, and good online prices.
Ft Worth Camera has all the chemicals you need, and their prices are competitive with online prices.
B&W is easy to do at home. Color film is a different story, you will most likely need to use a lab for color. You can get the negs developed and scanned to a CD, and not get prints made to save a little money. You can print them yourself off the CD.
I didn't see the Epson 4490 scanner mentioned, but it has negative holders for 35 and 120, and does a good job. I got mine on the Espon web site, refurbrished for around $100.
If you are buying a flatbed scanner, be sure it will scan 120. Some of them will only do 35mm negatives.