What kind of equipment and software is needed to do closed captioning?
Is it possible to do <$1500CDN/$100USD or so?

A friend of mine is looking to submit videos to MuchMusic and on their website it says they require closed captioning.

Equipment I have access to:
PC + Premiere Pro and Vegas
Mac / Final Cut
BetaSP deck
DV deck
analog video capture card (osprey something something)

I know the exchange rate may seem like crap, it won't cost you $15 for a US dollar.... ;)

Do a google search for closed captioning.

I could not find anything that works with vegas, but here is a place to start:

http://order.kagi.com/cgi-bin/store.cgi?storeID=ZSI&&

http://www.cpcweb.com/Captioning/cap_software_post-production.htm