Never could have enough socks or washcloths - get the cloths at the auto parts section - microfiber blends are getting cheap, they're bigger and more durable than the "baby" washcloths, and ever so much softer.

Towell warmer?

Essential? Diapers. It's not original but would be appreciated. Buy diapers in varying sizes. Wrap a tower of Size 1,2,3,and size 4 diapers. She'll probably have enough newborn sized diapers. I think my kids only wore newborn size for a couple weeks, they outgrow them quickly.

She'll probably have all of the gear. I had a baby wipe warmer. Those things are pretty silly. As well as the diaper genie, not essential in my opinion, but some people like them.

The things I most appreciated is a Boppy pillow, sling, bouncy chair, activity mat, and Ultra Saucer. I also loved my Arm's reach co-sleeper, but that is not in your price range.

The Boppy is very helpful with nursing and propping baby up as they are learning to sit up.

I loved my sling. A sling or some kind of baby carrier is essential in my opinion. I had an Over the Shoulder Baby Holder. I loved this thing. I tear up thinking about my babies in their slings.

Bounce chair. They are great for transporting baby around the house so you can always keep your baby with you if they're not in the sling. When they were teeny tiny infants I would even put the bouncy chair on top of the kitchen table while I was in the kitchen. (Of course, you wouldn't put them up on high surfaces once they got really squirmy.) I would also put baby in the bouncy outside the shower if I needed to shower while they were awake.

My babies loved their activity mat. Sometimes they would only tolerate it for five minutes, most times longer, depending on their mood and the kid. My first baby loved this thing. We had the red, black and white one.

An Ultrasaucer is fun. These for older babies, but they're a must-have in my opinion. My kids didn't like a swing. They would cry and cry. Swings are lifesavers for some parents but my kids wanted no part of it.

Other ideas are high chairs that mount to the table. I just bought my husband's cousin one of these. Sassy baby toys are awesome. You gotta have those. Also, a baby portable baby changing pad with a terry cloth cover. I had one of these in my bedroom on my dresser. You can also move it wherever you need to around the house. I didn't have a real (piece of furniture) changing table. They were kind of a waste in my opinion.

Something that I loved and used all of the time, but she won't be able to use until the kid is two, is a bike mounted kid seat.

I just thought of something that I loved, and that is more original.

Sleep Baby Sleep by Nicolette Larson. This CD is so beautiful! It is the best baby CD that I have ever heard or owned. This CD and other baby music would be a great gift. My babies loved Gershwin. :-)

yay! thank you! i'm going to check these all out and even send the list on to other friends in case they need ideas!

This book & CD has already saved my sanity a few times - the Happiest Baby on the Block.

Slings are tricky. My friends bought me a fab one - and Squigs screams blue murder if he's near it. On the other hand he loves being wrapped up (ie in something like a moby wrap) which is something I even do at home during the day. The advantage of a wrap is that there are more tying options. The disadvantage it it requires your friend to learn to tie.

Bamboosa towels/facewashers - so soft!

A friend (already a mother) gave me a stack of just handkerchief size muslin squares. OMG we can't survive without these. Especially now in droool season.

And I still have to buy myself this book - Born Yogis - but it would make a cool pressie.