Great post from Jason Snell with recommendations for inexpensive (but quality) podcasting gear.
One of my biggest hurdles in getting back into podcasting is my lack of "real" gear and a "real" studio. (I used a friend's studio to record my appearance on Less Than Or Equal back in August.) When I did my old show, Accessible, I used EarPods with my Blue Yeti mic sitting on a table. It worked fine, but I never was completely comfortable with my setup—and I felt that showed some in the show's overall quality.