The SDK is free I believe. The $99 would be to join the Apple Developer program and obtain a digital certificate to be able to distribute Apps through the iTunes store.
I'm not experienced in Objective-C, but I have heard its much less of a nightmare than C++ and actually more elegant to use than C. Nevertheless, if you haven't done ANY type of programming before, I'd recommend you start easy and choose a simpler language.
PHP is nice and easy, but mostly limited to web applications.
Java is more advanced and much more versatile with a huge dev community, but it has its drawbacks.
I don't have alot of experience in Python, but it seems to be a major favorite among many, and very intuitive and developer friendly. Ruby is much the same, although like PHP, it's much less popular for anything other than web applications.
C# and VB.net are also very nice to use, but because they use a "virtual machine" like Java, they are mostly limited to Microsoft systems.
If you are ambitious to get moving on the iPhone SDK ASAP and are a quick learner, then you should just dive head first into Objective-C.
I would post some links for getting started, but honestly this is such a popular topic on the web that you won't have any trouble finding resources and information.