Hmmmm...
Essential:
Diapers
Covers
cloth wipes
diaper pail
baby gowns (I love those-so easy for changing)
carseat
sling
boppy or other nursing pillow
certain babyproofing measures
blankets
bibs if you have a big drooler

waterproof mattress pads

Burt's Bees diaper cream (only essential in case of rash)
Nice but not necessary:
padded changing pad and cover
co-sleeper (since our bed is already full most nights

)
bouncy seat-great for getting a quick shower
swing-I have had one babe who loved it and one who hated it.
stroller-sometimes almost necessary when you have older children as well, if not for baby, then for toting stuff.

crib-sometimes nice for naps, especially to protect baby from before mentioned older children.

high chair or booster seat for later
sippy cups for later
a couple of nice wooden/cloth toys
rocking chair (for me this is almost an essential)
baby washcloths/towels
Forget about it:
bottles
disposable diapers and wipes
playpen/ pack 'n play (althought they make great toy boxes!)
big plastic junk
diaper genie
training potty
baby bathtub
sleep positioner
special "baby" laundry detergent
special "baby" bottled water
tons of pink frilly clothes (in case of a girl)
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