Ok so I don't really have a camera bag just yet so I'll just tell you what would be in my camera bag if I had one... btw, when I do get a camera bag it will be this one from Epiphanie!! Goregous, isn't it? I'll have to save my pennies.
My Camera is a Canon Digital Rebel XSi and I absolutley love it. Awesome colors and clarity every time, it’s great! It's an entry level SLR camera but it's perfect for me and you can't really beat the price. The only drawback I've found is it's ISO performance. It maxes out at 1600 and the pictures can be pretty noisy at that setting. Lets face it, sometimes the light just isn’t there and you want to bump up the ISO. It does however handle ISO 800 extremely well and many of my pictures on this blog are taken at that setting.
As for lenses, my first lens purchase was the Canon 50mm 1.8 II and Compared to my kit lens, it's heaven. Pictures are just so much more sharp and clear. I find myslef using it 90% of the time, expecially indoors. I cannot say enough about this lens... I absolutely LOVE it!! And for the price there is NO better lens out there!
My second lens purchase was the Canon 85mm 1.8 and it's very similar to the 50mm. It's considered a medium telephoto so it comes in handy when I'm outdoors. It also give the most amazingly beautiful background blur.