For sound effects grab various odds, ends, and toys from around your house and bang on them into your microphone and mess around with them in Acid, or Soundforge, or Audition, or Audacity.
For music Fruity Loops is the best for the loop music, but if you want something more orchesrated/cinematic you'll probably want a good orchestral sound library and some notation software (make sure the library can export to .wav).
Fruity Loops has some software synthesizers included and available for purchase. Kontakt has some good music software. There's also Buzz (www.buzzmachines.com). These can be fun for funky sound effects and weird electronic loop music.
If you're a music theory master I recommend:
Sibelius
>>>Kontakt Player Gold
Finale
Garritan Personal Orchestra(library works with Sibelius/Finale and has included notation software demo:
http://www.garritan.com/mp3/GPOAdventure.mp3)
Crazy Donut Productions, Current Project: Project Starbuks
Sony stole our name!
