What are some good lights for portraits?

Hi! I have a D7k, with a Nikkor 17-35 f/2.8 and a 50mm 1.8. This lens combo works great for me right now, and I'm looking into getting a good at-home/slightly portable lights and backdrops for portraits. I'm slightly overwhelmed by tungsten lights, strobes, continuous lights, etc. I have no idea what to get, but I'm on a tight budget, and am looking for some lights with a backdrop for under $200.Is this possible? I would imagine that the 17-35 and 50mm are just about perfect lenses for portraits, and i don't need to get any new lenses.
Thanks!

Added (1). @MAX: Why would I use a telephoto lens for portraits, especially when my camera has a 1.5x crop factor? Do you know much about DSLR's? I own a AF-S Nikkor 70-200 f/2.8 VR, but I'm sure as hell not going to use that for a portrait.

? Are joking, you need a new lens! A wide angle lens may produce some interesting shots but none of which would be flattering in a standard portrait, a 135mm i find to be the best for portrait

I know this doesn't answer your question… But why not the 70-200? At 70-100mm or so and at f/4 it's going to be really sweet for portraits if you need something longer than your 50mm.

The 50mm APS-C/85mm full frame standard is not cast in stone. Many prefer a somewhat longer lens, it's basically just the lower limit for the focal length, not the upper one.