PicBasic compiles the basic code into assembly language.
If you are using an 18F chip MPASM then converts the assembly into HEX.
This is all done automatically when you compile your basic code. MPASM is free, it is part of MPLAB. When you purchase PBP a compatibe version of MPASM come with it.

Now you need a way to "squirt" the hex into the PIC. That is where the PicKit2 comes into play. There are other programmers out there. If you do not go with the PicKit2 MeLabs has some good ones. Beware of the clones though. Nothing but trouble. The last I flecked the PicKit2 war around $50 US.

So it boils down to needind PBP and a PicKit2 and a bread board or two and you should be good go.