Daydreamer, I'd recommend going for a set of copper pots and pans. They're expensive as hell, but well worth the investment and should last you a life time.
When it comes to knives, Japanese steel man...get a few Global knives. You don't need an entire set either. Get yourself the 8.5 or 10inch chef knife as that's pretty much all purpose, but if you want to get a boning knife or a paring knife that'll work too. They are a bit pricey, but they are a one piece knife meaning they have no wooden handles, it's just one giant piece of metal so you don't have your wooden handles getting infested with germs.
Get a whet stone and that long metal thingy to keep the blade even, but once every year or two take them to get professionally sharpened. It's worth it, and will bring your blades back to life.
Also, get a cast iron skillet, I think someone mentioned that before. Never wash it with soap. Just warm water. That shit builds up the flavor of everything you cook throughout the years.
p.s. on the knives...
http://en.wikipedia.org/wiki/Global_(cutlery) (also to note, they are balanced)