Hi Mo,
I have found that doing a VLCD is not expensive, compared to the amount I used to spend on food, and as you get all your nutrition etc from the packs, you don't crave anything else, so no popping out to the corner shop to get chocolate, crisps etc.
I have also tried eating only 1000 cals worth of veg, fruit, meat etc, and it does not work, as your body will not let you stick to it, it will deliberately sabotage your efforts because you will be tired, hungry and grumpy. If you want to eat natural, healthy food to lose weight, do it - stick to rice, veg, fruit, chicken, low fat yogurt etc - but do not expect to be able to only eat 500-odd cals worth and get very far. Any weight you lose in the few days you can manage it will not stay off once your body tells you to give up. Eat something like 1500 cals worth, do some exercise, and you will lose the weight gradually and your body will feel that it is getting enough food (in fact, given your starting weight, even doing this will mean you should lose quite a lot in the first few weeks anyway, then it will start to even out to a more regular decrease). Or do a proper approved VLCD with the meal replacement packs, and lose it a bit faster.
Weight watchers have an online thing, which here in the UK is around £10 a month, which is very useful for keeping an eye on what you are eating. Given that rice, veg, pasta etc is cheaper than processed food anyway, you will still be better off financially doing it this way, I reckon! Or I think you have sparkpeople in the US, which is even better as it is free!
Good luck, whatever you decide
