If I had $500 here is how I would spend it:
Arrows: $100-125/doz
- GoldTip Expedition or XT Hunter - 1 dozen finished arrows
Release: $75
- Scott or Tru-Fire. I prefer a wrist strap double caliper release. Scott Shark or Little Goose, Tru-Fire Bulldog, etc. (online purchase)
Sight: $75
- I think TruGlo is the best of the "budget" sights. Something like the 3-pin "Rival" will fit in this price range - or a 5 pin if you can find it on clearance/sale (my Cabelas had multiples in the bargain cave a month ago).
Rest: $125
- VaporTrail Limb Driver Pro-V - buy this at your pro-shop and have them install it.
- (this is the last area I would scrimp on)
Quiver: $50
- Plenty of usable quivers at/under $50. Octane, Trophy Ridge 5-spot, Rage, etc.
Stabilizer: $50
- Stabilizers are overlooked by many, but I think a key component of consistent shooting. I like a HEAVY stabilizer. The good news is they are installed by simply screwing them in so you can buy on eBay/online and find them pretty cheap. I have an NAP ShockBlocker. I also like the B-Stingers. But if you choose you can go with the cheap Sims Limbsaver and it'll cut down on vibration.
...if you are looking to trim that to closer to $300 you could cut your stabilizer down to $25 (or cut it entirely for now), drop your quiver down to $30, ...personally I still wouldn't scrimp on the rest, you could cut your sight down to $50 (particularly if you scour ebay or the ArcheryTalk classifieds), and you could go with a cheap release for now. That could save you $25-50. Total that could save you another $100-125, but in the long run will probably end up being a cost that you pay again when you get frustrated with the cheaper equipment.