Must Haves....

We are finding out what baby Graves gender is in a little over a week!  I have recently started thinking about the nursery , because I know as soon as we find out what we are having I will wanted to get started right away.  I picked up several magazines at the Dr. office last week, and was thumbing through them as I waited.  I noticed there are so many marketing gimmicks that appeal to moms, and I am sure most of the time first time moms fall for them.  I saw some things that could be very helpful, and then there were things that I wasn't too sure about.  So I want to ask all of my mommy friends out there to help me decide what are things we must have/can live without.  Our house is not tiny, but its not huge either, and I learned my lesson with the wedding about registering for things that I had no room for and would never use.  We have a older house, so as any of you with older homes know, having a older home = NO storage/closet space.  Any advice/help would be greatly appreciated.