This question comes up constantly and there is no great answer. People are going to say Speedplay or Look pedals and tell you why either is the "best in the world." I have Speedplay Zeros and I love them. They work perfect for me. That being said... it is honestly best to ride what your friends are riding. It makes it easier to test out different bikes.
+1 on above, actually there is another thread basically asking the same thing about the pedals. For shoes you can get cycling shoes or tri shoes. I got a pair of cycling shoes but now want Tri shoes (anyone want to swap?). Budget will dictate some of your choices.