ATTN BEER BREWERS

I need some advice. I really want to start brewing. I have been goofing around with *thinking* about it for about a year. A friend of mine said he would do it with me, but my foot dragging pushed his impatience, and he started without me last night. He's doing a Cream Ale, from some sort of starter kit, and brewing straight to a keg. Booo. But it seems to have been the competitive spark I needed to get off my duff and start.

I bought this book, and I ended up getting a little more freaked out after reading, since it suddenly felt a lot more like chemistry class than home ec. I can bake, I should be able to brew, but now I am over thinking it. I am definitely starting from a kit from a local homebrew store, and I am STILL compiling a list of equipment I need. I'm recruiting the husband into the hobby, so I won't be alone.

I would love feedback from all you awesome people out there, you award winners, you serious brewers that I admire so much. Here are my starter questions:

1. What are the must have, no messing around, don't bother if you don't own this, equipment that you would recommend?
2. For a first timer, what style of brew would YOU recommend starting?
3. Should I attempt bottling, or is keg brewing easier? I have access to kegs and a kegerator, so I feasibly could do it, but am afraid of ruining so much beer all at once.
4. What are the worst mistakes newbies make, and how can I avoid them?

Thanks guys, I really do appreciate it!