in a small closet grow heat is the biggest hurdle. i learned to grow in a 7x2x8 closet so i think i can help you through it. budget?.. a switchable mh/hps is the best light. 1 400 watt will give you good stuff a 1000 watt will give you more bud but its twice as hot so you need to spend more on a bigger fan to cool light. it will make it harder to cool the room its self. it is do able just more expensive. if you know you have females grow 8 in a hydro setup. double that if your starting from seeds. dirt is a liitle slow for closets since you need fast turn around to make up for lack of space. i think you want the most possible for the money the electric cost.