My Reccomendations
Paint: For starting out I would recommend Testors ACRYLIC (avoid enamels like the plague!) flat (not gloss) paints. These are fairly cheap and do a pretty good job, I haven't had any issues with them chipping.
Xacto Knife: The only important thing here is to have a sharp blade, but be careful not to lob off a finger
Glue: I just buy a package of 3-4 tubes for $1 at walmart or or the local $ store. the lid tends to get glued on after a while which can be a pain, but for the price it's quite effective.
I left out Sculpy because I myself haven't used it much, nor have I been able to acquire any Kneadatite (green stuff)