Prisma colored pencils and Micron ink pens. I usually draw on card stock, but I sometimes settle for regular white paper.
(1) Scan your images into Photoshop. Go to Image > Adjustments > Curves. Play around with the Curves tool until your colors look more vibrant. (2) Make a duplicate of your drawing. Click on the top duplicate layer, set the blending mode to Soft Light and change it's opacity to 50%-75%. Your colors should look better.
I made a colored pencil tutorial--take a look at it. The tutorial was made in 2005, but I recently updated it.
A colorless blender is a pencil made out of wax (no color) that helps you blend colors. I'm ambivalent towards colorless blenders. I didn't start using one until 2007. It didn't change the results of my artwork, but it did make blending colors easier.
There's a significant price difference between the brands. A 24-set Crayola box will cost you ~$6 while a 24-set Prisma box will cost you ~$25. Prisma pencils are more professional--they're smoother, more vibrant, and easier to blend--so its higher price may be justified. You can buy Prisma colored pencils in many stores, including Staples and Pearl Paint. For those who can't find them in nearby stores, you can buy them at online retailers such as Dick Blick.