Hi If you try the links below you will get lots of info on what to buy and what to look for. A good starter, inexpensive flute is the Tony Dixon model from Hobgoblin the GR2155. Don't be put of by the fact that its plastic -you don't have to oil it, worry about someone sitting on it. or dropping it and it has a lovely tone. I bought one a couple of summers ago and it started me on the road to flute playing. I now have an M&E flute and a Sam Murry flute, however I keep messing around with the Dixon flute.
Good luck
Mike
http://www.sover.net/~bhurley/flute.html
http://homepage.tinet.ie/~mandeflutes/Contents.htm
http://listen.to/whistleflute
http://www.woodenflute.com/
http://www.hobgoblin.com/flute.htm