Definitely try REI, or the dreaded Performance store if you have one near. I got my first pair of mt bike shoes on sale for less than $20 at REI, my first pair of road shoes on sale at Performance for $12.... I even got my Sidi's on sale for $30, but don't expect to see that everyday. I have tiny feet, so good deals tend to fall my way.
as far as pedals go Crank Brother's Candy C pedals can often be found on sale for less than $50, epecially if you don't mind an unpopular color.