So I've decided to plunge myself into the world of game AI, and have no idea where to start. For some background, I'm a college student right now majoring in a field closely related to Computer Science. I have experience working with cognitive architectures and am very interested in research in AI. I read an article (http://www.spectrum.ieee.org/dec08/7011) just yesterday that's made me realize the role games play in pushing AI forward (similar to what games are doing for graphics) and figured it'd be a good way to get more exposure to the field. Besides, games are a fun domain to work in and complement a long-time hobby of mine. So where do I start? I'm familiar with basic AI (pathfinding algorithms, a lot of machine learning, various stuff), and particularly, I'm interested in programming bots for a FPS. What games are people most extensively doing this sort of programming in, and what resources are out there for someone starting out in this? Thanks!

You might want to do a search for 'Champandard' on Amazon. He's on these forums often and has published a couple of books on FPS AI/bots :
Programming Believable Characters For Computer Games
AI Game Development: Synthetic Creatures with Learning and Reactive Behaviors

There are some good basic books on AI ( Matt Buckland : Programming Game AI by Example and Ian Millington : Artificial Intelligence for Games

Hay, those seem like great books but not wanting to make a new topic I was hoping you could help me with a similar Q.
I am taking an AI class starting today however I was wondering if there where any good E-books or online websites that could assist with the beginning understanding of AI as a whole. I understand path finding and a few other algorithms in AI but going from there is my problem. I don't want to pay for any other books then my current load as they are about $500.00.

The official home of all AI knowledge is now Alex Champandard's AIGameDev. There's a lot of material there and the community is slowly working on a wiki with not only information but plenty of links to info around the web.

... and there is AI Depot