I was in Europe for 3 months last summer and travelled alot, pretty much every 2 or 3 days I was on the move again. I think I hit 15 countries in all. Total cost was about $10,000-$11,000 including everything (trains and flights, flights to/from Canada etc.), and I lived quite comfortably and ate pretty good meals usually, and drank alot.
I was lucky in that I had a 3 month unlimited Eurail pass and stuck mostly to Western Europe. If you don't have Eurail some of the trains can be rather pricey ($100+ per trip for long ones on fast trains) but some are not bad. For the small amount I was in Eastern Europe the trains were pretty cheap. The trains in Spain and Portugal suck, if you are going there take the bus it works pretty good and is cheap.
If you have any questions about travelling in Europe let me know.
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