For visibility, I like my Alert Shirt vest.
http://alertshirt.com/wiraja.html The Class 3 Level 2 vest has orange and yellow, more reflective tape than I've seen on other vests, and short sleeves for some added coverage. If you buy one, note that the sizing runs large (I believe the measurements for each size are chest size).
For lights, it's helpful to have a light that's physically large. If your light is a tiny laser sized point of light, it doesn't matter how bright it is, it will still be hard for drivers to see you and judge your position and size. Notice how vehicle headlights and tail lights are generally a few inches by a few inches. The Serfas Thunderbolt looks like a good option. I haven't bought one because it's expensive, and I think I can make something better myself.
When visibility is poor, at least one of your lights (one front and one rear) should be steady to help drivers judge your position and speed. If visibility is good (clear day), at least one light (one front and one rear) should flash to attract attention. It maybe helpful to have lights on your helmet as well as your bike. I have a large collection of lights, though I don't ride on the roads much any more, so I just use a solid front light and a flashing and/or solid rear light.
Lights I keep on the bike:
Reelights - small flashing front and rear. These add just enough flashing to use during the day or with one of the other lights in steady mode.
Planet Bike Superflash - I use this in flashing mode
Superflash Turbo - I use this in steady mode at night, or flashing if I need high visibility in the day
Additional rear lights I use sometimes:
Red NiteIze SpokeLit - need to put this one back on for the dark winter months
Planet Bike 5 LED flashing - mounted on the rack
Headlights I use as needed:
NiteRider MiNewt 600 - my main headlight to illuminate dark bike paths. I've been riding home in the dark every day, and there are no lights at all for most of my ride.
Light and Motion Vega 120 - Backup headlight I keep in my backpack
I previously had some electroluminescent wire wrapped around my frame, but I rarely used it because the salvaged aircraft lighting inverter I was using didn't quite drive it bright enough.
The most expensive lights were the Reelights, but to me they are worth it for the simplicity, reliability, and lack of batteries. The rest were under $25, including the MiNewt 600 which I got at an REI garage sale for $20. I wouldn't suggest getting all these lights, but I think it's fun to try new ones. I haven't been pulled over yet for impersonating an emergency vehicle, but I wouldn't be surprised if it happens!
The two Superflash lights are mounted on the seat stays and secured with zip ties to make them a tiny bit theft resistant.
You can get reflective tape for your bike. DOT conspicuity tape works reasonably well, though it won't stick well on curves like bike tubes. For me a single 18" strip of conspicuity tape was enough to cover the seat stays, the fork, and add a ring around the seatpost. It's peeling a lot, but it still adds a lot of reflective area. I think they also sell 3M reflective tape you can add to your clothing and gear.