pencils:

BiC mechanical pencils (0.7mm HB #2) — These come in packs of five and are sold in practically every supermarket and convenience store in America. Easy to erase, which is crucial as I think my eraser spends more time on the paper than the lead does.

Staedtler 925 — I have a pack of three drafting pencils and a lot of replacement leads, but I never use them. I see this sort of thing as only for when I'm "serious" about leaving something in pencil and not inking it, which just doesn't come up all that much. Hard to erase.

pens:

BiC Intensity Pro (Fine) — Perfect for inking! A felt tip that doesn't bleed through paper. Doesn't smear, feels great to use. These also come in packs of five. Stockpile these.

Prismacolor Premier — A pack of five felt-tips of varying widths known as "the good pens"; I use these only when I need to do lines that are very bold or very fine. May smear if one attempts to erase the pencil too soon.

Pilot G-2 (Extra Fine 0.5mm) — I carry one of these everywhere I go! I don't really use these for art anymore, mostly just writing and doodling. Very prone to smearing if the ink isn't given time to dry. A real pain to get a new one going, but once it's broken in there's no stopping it. Packs of five.

I've tried using some fountain pens, and I like the results I get, but they're so inconvenient that it doesn't seem worth the hassle.

markers:

Prismacolor Premier (Jet Black PB-211) — Double-sided, used for coloring in large black areas.

paper:

Whatever's available.

hardware:

Epson Perfection V39 — A scanner that scans and ONLY scans. Easy to use, easy to move, easy to pay for. No printing means it doesn't stop doing everything just because it's low on cyan.

software:

Adobe Photoshop 7 — I don't know why I'd ever need anything newer. If I was trying to make anything photorealistic, I'd have to worry about being a more skilled artist first.

environment:

Until recently it was just a clipboard, but I've since purchased a small adjustable-height, adjustable angle drawing table. The surface is about 20" by 17". Quite small but bigger than the clipboard.