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Sitepoint recently posted a good how-to article on setting up your own WordPress site.  It covers many of the basics, and if you’re of a mind to save some money this is a great place to start as it takes you from start to finish through the process.  The link can be found here:

While we tend to do things a bit differently (in terms of which plugins we like, hosting account options, etc.), you’ll find yourself in a good place if you follow their cookbook.  Many of the things covered in that article are left to you to decide, but if you use it in conjunction with our “best practice” posts you will be in good shape.