CONGRATULATIONS!!
We're expecting our first DB in April, so I feel your pain on the cost of baby items. But as everyone else has said, you can get nice furniture without breaking the bank. We bought this crib from Wal-Mart:
http://www.walmart.com/catalog/product.do?product_id=8466714
We just set it up last weekend and it looks really nice. For a changing table, we decided to just get a nice dresser and put a changing pad on top. We spent a little $$ on it, but its nice solid wood and she'll be able to use it for many many years. Those two pieces are the only furniture we've bought so far. Eventually we'll probably buy a bookcase and some shelving to hold her toys/books, but she won't need those for a while.
As for all the other stuff, we were lucky to get a lot of it as gifts. Just wait until after your baby shower (if you have one) or until closer to your due date to see what you've gotten and what you still need. Babies 'R Us also gives you a 10% discount on everything left on your registery beginning 2 weeks before your due date, if you have a BRU in your area.
Also, don't even bother buying any clothes. You will most likely get a lot of clothes as gifts, whether you ask for them or not. People just love picking out cute little baby clothes! LOL.
We've also gotten a lot of items - clothes, carriers, and even some gear - for free or cheap from neighborhood parents on a local listserv that my partner belongs to. Check out YahooGroups to see if there is a parents/families group in your area, or look on Craigslist. The only thing I would not take second-hand is a car seat, because you can't be sure of it's history.
Good luck, and HAVE FUN! Buying baby things is my new favorite pasttime, lol.