Sorry for the Windows developers out there, this solution is for Macs only. This set of applications accounts for: Usability Testing, Screen Capture (Video and Still), Version Control, Task Lists, Bug Tracking, a Developer IDE, a Web Server, A Blog, Shared Doc Editing on the Web, Team and individual Chat, Email, Databases and Continuous Integration. This does assume your team members provide their own machines, and one person has a spare old computer to be the Source Repository and Web Server. All for under $200 bucks. Usability Silverback Licenses = 3 x $49.95 "Spontaneous, unobtrusive usability testing software for designers and developers." Source Control Server and Clients (multiple options) Subversion = Free Subversion is an open source version control system. Versions (Currently in Beta) = Free Versions provides a pleasant work with Subversion on your Mac. Diffly = Free "Diffly is a tool for exploring Subversion working copies. It shows all files with changes and, clicking on a file, shows a highlighted view of the changes for that file. When you are ready to commit Diffly makes it easy to select the files you want to check-in and assemble a useful commit message." Bug/Feature/Defect Tracking (multiple options) Bugzilla = Free Bugzilla is a "Defect Tracking System" or "Bug-Tracking System". Defect Tracking Systems allow individual or groups of developers to keep track of outstanding bugs in their product effectively. Most commercial defect-tracking software vendors charge enormous licensing fees. Trac = Free Trac is an enhanced wiki and issue tracking system for software development projects. Database Server & Clients MySQL = Free CocoaMySQL = Free Web Server Apache = Free Development and Build Tools XCode = Free CruiseControl = Free CruiseControl is a framework for a continuous build process. It includes, but is not limited to, plugins for email notification, Ant, and various source control tools. A web interface is provided to view the details of the current and previous builds. Collaboration Tools Writeboard = Free Ta-da List = Free Campfire Chat for 4 users = Free WordPress = Free "WordPress is a state-of-the-art publishing platform with a focus on aesthetics, web standards, and usability. WordPress is both free and priceless at the same time." Gmail = Free "Gmail is a new kind of webmail, built on the idea that email can be more intuitive, efficient, and useful." Screen Capture (Video / Still) Jing = Free "The concept of Jing is the always-ready program that instantly captures and shares images and video…from your computer to anywhere." Lots of great responses: TeamCity [Yo|||] Skype [Eric DeLabar] FogBugz [chakrit] IChatAV and Screen Sharing (built-in to OS) [amrox] Google Docs [amrox]