Family and friends are a great start....hey, some people even have baby showers to get started!
With a bassinette/cot - if you get them second hand you MUST get a new mattress for them both. And for each extra kid thereafter, they need a new mattress too. (SIDS guidelines).
We got a mountain buggy "swift" pram and it's great. Yes, it is a 3 wheeler but it folds up beautifully for the car and only weighs 9kg (as opposed to 11kg+ for most prams). Also, the little fella is out in it pretty much every day for walks with Mrs Squawk (and sometimes me on weekends). It has racked up probably 20-30km a week and we haven't even had to pump up the tyres yet.
As for clothes, your price point is a big factor choice wise - whether that's retail outlet or fabric. There's a heap of guides out there about clothes, but generally they say to make sure the baby doesn't overheat (SIDS risk again) so towelling is not great.
Dont buy too many clothes to start with. You dont know what size your baby will be born at, so just get a couple of things to get started with and use hospital gear while there. As soon as baby arrives, most gifts are typically clothes so you get a good supply pretty quickly.
As for outlets, Baby Bunting is good plus they offer a VIP card for 5% discount to pretty much everyone. I call BB the "Bunnings for Babies" as they have just about everything under the main roof. What I like best is the service they offer - much better than YCN in my experience. Target is good for the quick and easy things where you dont need much assistance and can grab stuff straight off the shelves.
Good books we have used (although I must confess, I do limited reading of them myself!

) include "Baby Love" by Robin Barker and "The New Contented Little Baby Book: The Secret to Calm and Confident Parenting" by Gina Ford. CYH also put out a small publication called "Toddlers A to Z" plus National Pharmacies have 4-5 little books they sell (recommended by CYH) for about $5 each. If you are a member of National Pharmacies, you get 20% off everything which is great for big purchases like an Express pump!