I'm just getting started myself. Got a few questions.
1) What do you guys use to create sound effects?
1) I use FL Studio and a variety of paid and freeware plugins to create sound effects and music. I also use Audacity for quick work when I'm on OS X and the PC's not turned on. Until you're ready to take the plunge into picking up a DAW (digital audio workstation), you can't go wrong with Audacity for making sound effects. You can download a variety of freeware effects processing plugins from sites like KVR Audio and others if you need to, at least on PC. I haven't tried that functionality on OS X.
If you need some sounds to start working with, sign up for an account at Freesound.org. The sounds uploaded are Creative Commons Licensed sounds. I used one for my first game and based on the CC License type that was specified, gave the author credit.
2) What do you guys use to create 3D models? How about 2D graphics? My artist is pretty good with hand art, and I'm thinking of getting him set up with a tablet/drawing app combo.
Edit - He does not as of yet have the tablet. So you guys can recommend android or apple tablet apps. Thanks
2) I don't really do a lot of 3D, but Blender is what I'd use if I needed to. 2D and Photoshop are synonymous to me, but that's because I've used it for years. I haven't used any of the art apps on tablets, so can't recommend anything there.
Like Freesound.org, there are also a variety of CC Licensed or free art asset sites like OpenGameArt.org and others. Just be sure that the license lets you use the asset without having to have your game be open source, unless that's what you were planning to do.
And welcome to the wonderful world of indie game development. Best of luck to you!