The first thing I would suggest is to take chronological photos of your baby from month one through twelve. Between architectdad's trigger-happy finger and Grandpa R's new camera, we've managed to capture every month of O's life so far in digital form. Many baby stores sell "first year" photo frames, which makes displaying those first year memories a breeze. Oh yeah...and Dads (or coaches): if you still have your wits about you after your baby is born, try to take a picture of the clock in the delivery room during the first minute of his/her life.
The second thing I would suggest is to buy a digital camcorder. Video captures so much more of your baby's personality than a still photo--if you are an amature like me. You could either string a series of clips together and produce a streaming video, or you could burn the series onto a DVD and send it to your family and friends.
