Craig's list is a good place to look for a bigger tank and equipment. I think it's a shame that saltwater fish and this hobby is as expensive as it is. Unfortunately, they are right regarding the research and larger aquarium. It means the difference between failure and success. People with the small nano reefs that you may of read about are typically very experienced. The smallest tank I've ever kept saltwater fish in was a 10 gallon but I still had good equipment and did frequent water changes. To be honest, the smaller the tank the harder this hobby is. You have very little room for error with a little tank.
Look into saving for a larger tank and equipment! Don't give up! You will love it once you get into it with all the right stuff!