I'm not a fan of B+K gear. As mentioned, their stuff is just rebadged versions of other companies' products with a premium tacked onto the price tag.
The HP 3312A is a nice analog function generator. Tabor also makes nice generators, which have been rebadged by Wavetek, Fluke, etc.
For an inexpensive 2-channel DDS and frequency counter, there's the FeelTech FY3224S. There's a thread here about it.
However, you should consider the Analog Discovery that rstofer has mentioned several times. It'll cover most of the general-purpose needs at a nice price.
I guess the AD would also eliminate the need for the logic probe the book recommends? It has 16 channels of logic probing right? So I could monitor what's going on in a digital circuit between a microcontroler/microprocessor and other IC's.
Not only will the AD function as a logic analyzer, it will also allow you to simulate switches and LEDs. Look at the Static IO feature.
The AD will also decode RS232, I2C and SPI buses which will be very handy when working on micros.
On the digital side, the device really wants to talk to 3.3V logic. It will tolerate 5V inputs but I don't think it will output enough voltage to trigger 5V logic. There are ways to deal with that (like a simple transistor) but micros these days are primarily 3.3V The Arduino, OTOH, is typically 5V so some type of level shifting on Arduino inputs (AD outputs) will probably be required. You can use a simple transistor inverter.
Or, spend $3 on a pair of logic level shifters. Configure one for input to Arduino and one for output from Arduino and shift up to 8 signals each way. You can mount these on one end of the prototype board and just leave them installed. Patch them when you need them.
https://www.adafruit.com/product/735Then there is the Digilent Adept library. You can use the library to create custom applications using one of the Visual Studio platforms. Build your own panel for a custom project, etc.
While you are at Digilent, consider some 2x6 or 1x6 headers. Plug these into the breadboard and the AD cables will fit right on. I am tending toward 2x6 just in case I want to use the signal generator output to my circuit while connecting to the scope input.
http://store.digilentinc.com/all-products/accessories/connectors-and-cables/