Lab setup recommendations. Power supply provides 0.5A. Suggest getting a logic analyzer. XS40-005XL can be upgraded to a XS40-010XL by buying a different part from Xilinx.
Breadboard recommendations (ACE327 minimum)
How the VGA and LED share the same pins
More FPGA connections can be had when the microprocessor is disabled.
The 3.3v tolerant FPGAs can input 5v. Here's how to get 5v on output as well.
Bill of materials $130 XS40-005XL, FPGA w/ 3.3v (5v tolerant), 9,000 gates (upgradable to 20,000) w/ 32KB SDRAM $56 3G ACE-327 breadboard $25 Xilinx Foundation Student Edition 2.1i (after $30 discount) (maybe just use some of this?) $17 AT17C256 Serial EEPROM - 9V wall transformer power supply