You don't need any special place to do the games. You can do them in a pasture if that's all you have available.
The basics you would need for Level 1 is the halter, 12 ft. Lead and the carrot stick and string. You could go buy a cheap rope halter from a tack store, but I guarentee you that you won't get as good results. Pat chose the materials he uses FOR A REASON and you are paying for quality and the stuff lasts you for YEARS. However, I'm fortunate enough to know a guy who makes halters, ropes and reins out of the same exact material Parelli uses, and I pay half the cost. If you PM me I could give you his phone number if you are interested in buying some stuff.
If you are simply wanting to do the 7 games and go no further, then getting the 7 Games DVD from the Success Series is a good way to go. If you are really wanting to understand Parelli and really want to know, inside and out, the theory behind the program then getting the Level 1 pack off Ebay
is the best way to go.