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I just started up a paysite this past summer, and I haven't been able to quit my day job yet, but we are making some money. But those dudes are right, you need to have at least $10,000 to get started. If you use your money smart, you can get away with a lot. Check out Dreamhost for hosting, they offer a great deal, and nearly unlimited bandwidth and storage space. But your site can't have any of the nasty niches.
As for credit card processing, check out Zombaio. They are good, and you don't have any start up fees.
I've heard from a lot of people that you can still make money from subscribers sites, but it takes around three years to really start making that money.
And don't forget about clips4sale and other options to make cash.
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