Craft:

Where to learn

First and foremost is the Arduino website. It's a huge repository of helpful information, but it can be overwhelming at first.
I recommend Massimo Banzi's "Arduino Booklet" PDF as a contained introduction to the Arduino and physical computing in general Link.
Tod Kurt has run classes about Arduino before, and has put his class presentation PDFs online. They're very comprehensive and great for beginners. - Link.

What to buy - the absolute basics for learning the platform

The board: I recommend the USB Arduino board, pre-assembled, for first-timers. Make sure it comes with a USB A-B cable. Here's a list of places to buy in different locations - Link.
A solderless breadboard: for attaching other components to your board; you can pick this up at Radioshack or Sparkfun. It looks like this, but may be a slightly different shape:

Photo: Sparkfun

Some LEDs (light-emmiting diodes): most of the basic tutorials involve lights. You can pick these up at Radioshack (in the component drawers, one should be clearly labeled "LEDs"); just grab an assorted pack to start with. They come in all shapes and sizes.

Photo: Wikepedia

Wire: You'll need some 22 gauge solid (not stranded) hook-up wire to connect your board to your components. Different colors are a matter of preference. This is another Radioshack-available material.
Pushbuttons: any switch will work, but I prefer small "normally open" buttons that can plug directly into your breadboard. - Link.

Needlnose pliers and wire strippers are both available at RadioShack, but check out Techni-Tool for some more options. - Link.

That's all you'll need to get started!

What to buy - next steps and general resources

General electronics resources for parts can sometimes be tough to navigate with their poor web interfaces, but you'll get used to the information overload. Tip: clicking on links to the "datasheet" will often get you a picture or drawing of the component, which helps a lot.
Parts and supplies retailers (besides Radioshack, which may phase out their components division fairly soon):
• Jameco
• Mouser
• Digikey
• Allelectronics
• Octopart
• Sparkfun
• Techni-Tool
• SuperBrightLEDs
• Reynolds Electronics

Books:
Physical Computing by Tom Igoe & Dan O'Sullivan
Practical Electronics for Inventors by Paul Scherz

Conductive fabrics, paints, epoxies, threads: Less EMF

If you think you'll play with electronics more than once, I'd highly recommend purchasing a multimeter. You don't need a super high-end one.

Where to go for help

The Arduino site: it's full of guides, tutorials, sample code, circuit diagrams, and more. - Link.
If you can't find the answer to your question somewhere on there, try the forum. - Link.
Tom Igoe maintains a site about physical computing with lots of explanations and tutorials. - Link.
You can also query the knowledge base of some of the physical computing or Arduino mailing lists.
The NYU Interactive Telecommunications pcomp mailing list helps beginners learn about physical computing. - Link.
Arduino.cc mailing lists are geographically sorted, but feel free to sign up for one even if you don't live there. - Link.

Related:
• LED Picnic Blanket - Link.
• CRAFT vol 1- "The Electric Tank Top" by Leah Buechley - Link.
• The Soft Electric by Grace Kim - Link.

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