Studios usually mix to a reference system. The goal is to have a fantastic sounding production. They do compromise slightly for lesser systems, but making the audiophiles suffer so it sounds better on an iPod is not happening (at least not with EQ, but Compression is a WHOLE different ballgame

).
As far as the EQ and Pink Noise, there are 2 methods: Use an RTA (Real-Time Anylizer) with a mic input along with a reference mic (the mic that was calibrated to the RTA) and a Pink Noise generator - this allows a level meter for each band (usually 15 or 31 bands), OR you can use a "Sinewave Sweep Generator" that produces a variable tone, and a "Flat"
omnidirectional mic, and a way to view the mic's amplitude - this way you sweep the Sine Wave across the spectrum, and watch the amplitude on the Mic's meter (more accurate). For the "Sweep" method, you can even use a Test CD with a sine-sweep with a known interval (EG: 0:00 is 20Hz, 0:10 is 100Hz, 0:30 is 500Hz, 0:45 is 1KHz, etc) in a pinch. A Sine Wave generator with a frequency display is usually easier to zero-in on the problem frequencies.
I would not recommend using any "Cheap EQ" - be it Analog or Digital. If you must keep the cost down, go with the EQ in your PC (whatever media player you have should have an EQ). A cheap analog EQ will have drastic phase issues, and a 10-band EQ is not fantastic for room shaping. For tuning a room, a parametric is probably a better idea (exact control of the frequency and bandwidth). You might need 5-10 or more bands of Parametric EQ.
If you do this, be prepared to see deviations on the order of 10dB-20dB or more (beyond an EQ's usual cut/boost range). The room has a DRASTIC effect on the sound, and room treatments are preferred over drastic EQ... Also, move a foot over, and the sound is no longer "Flat". Treating the room will lessen the dicrepancies as you move around the room.
Treating the room. A true "Anechoic Chamber" would yield zero reflections, but sounds VERY un-natural. If you have ever been inside one, you know it feels like your head is sucking into itself (an odd phenomenon

). You DO want a certain amount of RT-60 time (decay time) to keep the environment "Natural". The key is getting rid of ANY early refection that will reach your ears less than 20ms after the direct radiating sound, as well as making the room decay in a controlled manner (you want a even decay across the entire spectrum).
The first line of defense is placing absorption to hinder these early reflections. You can have a buddy walk along the perimeter of the room with a mirror flat against the wall. You sit at the "Listening Position". Anywhere you can see the speakers' reflection in the mirror is a place that needs absorption (including the ceiling!). You will want these panels to be fairly "Broadband" absorbers (should be effective to at least 200Hz or so all the way up). Owens-Corning "703" is a VERY common material for DIY'ing absorbers (it is 2' x4' rigid fiberglass; 2" thick - you can make a wooden frame, and cover with Burlap for asthetics). The material you cover them with should be "breathable" so the pressure can pass through to the fiberglass inside. A "tighter" fabric will still allow lows and mids to enter, but might reflect some highs. You can choose a covering that compliments your desired end result (you don't want too much high frequency damping). Spacing these panels 2" off the wall also helps increase their effectiveness at lower frequencies.
Another HUGE issue is bass trapping. Since the bass wavelengths are so long, they cause the most issues as far as constructive/destructive interference. Bass raps are usually large, and expensive. In a recording studio, 25%
or more of the room's surface area may be dedicated to Bass trapping alone! The odd thing is, you will loose some SPL in a "Flat" room. Tis is due to reducing the amount of constructive (as well as destructive) interference. You sacrifice some irregular SPL dB's for the sake of a "True" low-end.
Unless you want to spend cash - just use your ears - and be conservative IMO. Both of my "Reference Systems" are relatively flat (no extra EQ's are added). Good speakers should do OK in a normal room w/o EQ, but a good room will really take it to the next level. Crappy speakers? EQ to your heart's content
