I currently have the following gear in my kitbag:
Canon 40D
My first D-SLR and I’m really not disappointed. After much research on the web including the fantastic dpreviews.com (which I hasten to add, you must check before buying anything camera related), I finally settled on this body.
In a word, it’s bloody brilliant. Incredibly fast with that Digic III processor. It’s been a brilliant tool to learn proper photography with and I completely recommend it to anyone else out there looking to get into it.
Canon 17-85mm f/4-5.6 IS USM
Not a bad lens but have better. Good glass but suffers from barrel distortion when it’s at it’s widest. Can’t complain too much really as I do ask a lot of my equipment. Someone said I had OCD today, I don’t believe I do but it has to be perfect darn it…! 
Canon 60mm f/2.8 Macro USM
Superb fast macro lens which I tend to use quite a lot. Very sharp and fast.
Canon 20mm f/2.8 USM
This is a brilliant wide bright lens which I got recently at the start of 2009. Can’t fault it so far on my 40D body.