Joining the developer network will cost $25, the rest is free. You don't need an official development device, all you need is an Android device, take your pick from the 50+ available. I would suggest a Droid, HTC Evo, Incredible or any of the other high end devices. From what I understand, the N1 is no longer available, you may be able to find one on eBay though, that's a great place to get a contract free phone.
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