Nike dry-fit is the absolute best as far as technical running clothes. I've tried a bunch of brands: REI, Sugoi, New Balance, but Nike is the best. Get the "waffle-like" clothes since they allow the sweat to evaporate off the best. The spandexy and sphere dry-fit clothes don't work as well (and they cost more). The technical clothes are definitely worth it. I can't run in cotton anymore - it just doesn't breathe well when wet. Also, the technical clothes last forever. I've had some stuff last well over six years. REI and EMS have lots of stuff on sale.
For socks it depends on your shoes. I like the Thorlo lite running socks but sometimes I just use a cool max sock. Never cotton.
I used to run in the Puma complete tenos but I moved to Brooks Adrenaline. Both are great shoes, it just depends on what fits. Go to a running store and have them help you find the right shoe for your foot/size. Oh, Foot Locker is not a running store. Go to a small place where the employees are runners. CNet claims you can put the nike plus pod in a non-nike shoe, probably on some carrying device.
I won't bore you with pictures. I've got too much gear.
no Nano = no nike plus