Ebates staffer Bryan and his wife (who have six kids) give their recommendations:

Make sure you stay away from the thick heavy comforters that they sell in crib bedding packages. Newborns overheat and they have even tried to link SIDS to that. It is fine to buy one for looks but a baby in jammies and lightweight blankets is going to the best.

When it comes to cribs you need to consider a few things. First, how much space do you have? Second, are you planning on any more children using this crib? And last, it really comes down to style. If you have enough room I  would get a full size crib. They can sleep in them longer and it is easier to find the bedding in the size  want. If possible I would make the investment into a convertible lifetime bed. These type usually  start out a full size crib and then convert to a toddler bed and finally a double bed for your child. These are the beds I would have liked to buy if I had space for a Lifetime crib: The Storkcraft Aspen Stages Crib ($299.88 at Wal-Mart) , and if you have a smaller area the Emily Mini Crib ($169.97 at Wal-Mart) is a nice one.

When it comes to bedding, get a set that you can love, Keep the comforter separate, with too many washes these tend to not last very long  no matter what brand you use. Get a thin fuzzy blanket ($6.99 at eToys) that matches the colors of the set you chose. Use that when baby is using the bed and the comforter ($34.99 at Target) when you are just showing off the nursery.