Eric,
for starting out on knives having two: one that hogs wood off (i think they're called roughing knives) and a detail knife are both really good to start out on. I primarily use my roughing knife (not sure who the maker is because I bought from my wood carving club and we buy from someone who makes his own knives.....but even so it wasn't expensive) for pretty much everything (including some detail work) just because I am quite comfortable with it.
Flexcut makes decent knives.
I also use lots of gouges, v-tools and chisels for detail work. Though I don't have many, the folk at carving club are generous to share with me when I am at the club meetings.
For tips, a flame shaped burr is a good one. I would pretty much agree with everything everyone else has said so far. I would get a big sanding drum for the foredom in addition to the smaller sanding drums like Dave posted.