Reddit mentions of Chef’sChoice 130 Professional Electric Knife Sharpening Station for Straight and Serrated Knives Diamond Abrasives and Precision Angle Guides Made in USA, 3-Stages, Platinum

People pay far too much for knives and far too little for knife sharpeners.

A median set of any name brand like Wusthof, etc. will do just fine. Avoid large sets. You won't use half of them.

The knife sharpener is just as important. I use this one and recommend it highly: http://www.amazon.com/Chefs-Choice-Professional-Knife-Sharpening-Platinum/dp/B000CSK0DM

The chefs I've talked to swear by Knifewear. They specialize in Japanese knives, bit will sharpen just about anything.

I actually own a Chef's Choice Knife Sharpener, and it does a crazy good job of sharpening.

Alton Brown's I'm Just Here for the Food is a great primer on the science of cooking. I read it in culinary school, and it was a great distillation of the main concepts (which cuts are of meat are good for braising, searing, roasting, etc. and how to properly perform each technique). If you end up enjoying Alton Brown's style, I would also recommend Fish on a First Name Basis for fish cookery. Lastly, Cook's Illustrated is a wonderful resource on food and cooking. The yearly online membership is only approx $25, and you get access to all previously published recipes and equipment reviews.

In terms of equipment, the knife I personally use is the Victorinox 10-inch chef knife. Japanese steel is great and all, but for the same price you could get this knife, a good electric knife sharpener, and a honing steel and still have some left over. The best knife is a sharp knife after all. I would also highly recommend a T-fal non-stick pan for a solid multi-purpose first pan.

Finally, for an herb garden, I generally try to aim for either expensive or infrequently used herbs for indoor gardening. The reasoning behind growing expensive herbs is pretty straightforward. I primarily grow infrequently used herbs to avoid wasting what I wouldn't use up when cooking (as you mentioned is oft a problem). In my region, basil, sage, thyme, tarragon, and oregano would all be good candidates to grow. Parsley, cilantro, and bay leaf tend to be cheaper at the market in my area, so I usually just purchase those.

What do you guys think of this thing? VERY highly reviewed.

http://www.amazon.com/Chefs-Choice-Professional-Knife-Sharpening-Platinum/dp/B000CSK0DM/ref=sr_1_15?s=home-garden&ie=UTF8&qid=1407272194&sr=1-15&keywords=knife+sharpener

I disagree. Get the Chef's Choice M130 knife sharpener. It's three stage, and does an amazing job on my knives.

http://www.amazon.com/Chefs-Choice-Professional-Knife-Sharpening-Platinum/dp/B000CSK0DM

Edit: thanks price zombie! Seriously though, I swear by these sharpeners. I use it on my Wustof, Shun, and Henckel knives.

Cooks Illustrated (aka America's Test Kitchen) recommends this electric model for western knives (sharpened to a 20 degree angle): http://www.amazon.com/dp/B000CSK0DM/

Then they just recently tested a bunch of new sharpeners that sharpen knives to 15 degrees (Japanese style). They even turn a 20 degree knife into a 15 degree knife. This is their top performer: http://www.amazon.com/dp/B0018RSEMU/
They also tested it on knives that were chipped and it did well in smoothing them out.

Do yourself a favor and buy one of these (Chef's Choice 130 Professional Knife-Sharpening Station, Platinum https://www.amazon.com/dp/B000CSK0DM/ref=cm_sw_r_awd_Uf4-ub0WQ0940
https://www.amazon.com/dp/B000CSK0DM/ref=cm_sw_r_awd_Uf4-ub0WQ0940)

It's worth every penny.

Honing steels, use this every time you use the knife.

Electric Knife Sharpener, only use this if using the steel isn't working, i.e., you can't get the knife sharp on the steel.