My starting equipment consists of the Canon EOS 30D body which has turned out to be an excellent and responsive camera. It feels solid in my hand and since I don't expect to upgrade my cameras often I was willing to spend a bit more to get a good quality camera. I've been able to capture some excellent baby smiling pictures and that is enough to make the camera worth it. :-)
Along with the 30D, I got the Canon EF 50mm f/1.8 II (amazon). This seems to be THE starting lens to have. It performs very well and the price is excellent (~ $80). If I went with only one lens this would be the one and for most pictures is the one I use.
I got the Canon EF 28-105mm f/3.5-4.5 II also to be able to get those long range shots. This lens is also priced well compared to other lenses at ~$230. Some might feel the 105mm range is not enough and I can understand that. Sometimes I do wish for a 200mm lens, but that's for another time. ;-)
On the recommendation of friends, I bought the Canon EF 28mm f/1.8 for indoor shots. This lens costs more then the others at ~$400 so it required more deliberation. It's a nice lens to have, but the previous two lens should cover most basic needs.
Along with a new camera bag (~$60) and some lens filters (~$40 total), this completes my base set of camera equipment.