Recommendations

Music for Beginners

Youth Beginners should purchase the Suzuki Flute School Vol. 1 & 2 Music CD and Abracadabra Flute by Malcolm Pollock and are encouraged to start with the Suzuki Method.
Band Class Beginners should purchase Abracadabra Flute by Malcolm Pollock and Flute 101: Mastering the Basics by Phyllis Avidan Louke and Patricia George

The Flute Scale Book: A Path to Artistry by Phyllis Avidan Louke and Patricia George
Flute 102: Mastering the Basics by Phyllis Avidan Louke and Patricia George

Scales & Technical Studies:

Etudes & Methods:

24 Petites Etudes Melodiques [24 Little Melodic Studies] by M. Moyse
24 Progressive Studies for the Flute, Op. 33 by Anderson; ed. DeLaney & Amsler (optional)

Solos/Collections:

Flute Music by French Composers (Various); collection ed. L. Moyse, published by G Schirmer
Die Soloflote Band I Barok [The Solo Flute Vol. I: Baroque], Various Collection of Unaccompanied Baroque Flute Solos; Edition Peters, ed. Nastasi

Music for Baroque Flutists

Method for the One-Keyed Flute by Janice Dockendorff Boland (The best book for absolute beginners I've seen!)
The Grammar of the Ornament by Eric Haas (Helpful Baroque Ornamentation Exercises for Baroque and Modern Flutists)
Das Flotenbuch [The Flute Book] of Frederick the Great

Reputable flute dealers offer a one week trial period before you commit to the purchase. Avoid buying used instruments on eBay or from pawn shops, and be sure to schedule a quick consultation with me before committing to the instrument.
Recommended Dealers: Miles Ahead Music (with repair service in Louisville, KY with Miles Davis), Flutistry Boston (ships from Boston, MA), JL Smith & Co (ships from Charlotte, NC).

Price Range $500-$1900:

For children under the age of 8, buy or rent a curved headjoint flute. Good brands include Di Zhao, Jupiter and Yamaha (Yamaha headjoints are available for separate purchase if you already own a flute).
For flutists over the age 8, try flutes with a standard headjoint by Di Zhao, Amadeus, Azumi, Pearl, and Yamaha.

Price Range $2000-and up:

Great brands include Altus, Brannen, Burkart, Emanuel, Haynes, Nagahara, Powell
Generally speaking the best flutes on the market in the higher price ranges have been made since 2000. Every year top flutemakers develop brilliant-sounding instruments with excellent intonation and the flutes keep getting better and better.
If upgrading to a top-of-the-line instrument isn't possible today, consider upgrading your flute headjoint. One of the simplest ways to approach making that upgrade is to attend the National Flute Convention, a Regional Flute Convention, or a Flute Specialty Store (one that only sells flutes and piccolos) and try many brands at one time. Good Luck!

Price Range $2000-$2700:

Price Range $3000-$7000:

Burkart
Hammig
Generally speaking, piccolos that cost less than $2000 often have significant intonation problems or cracks. The brands listed here are made of grenadilla wood and are perfect for the concert hall. If you're looking for a piccolo to play outdoors in marching band, it's a great idea use your school's instrument if one is available or buy an inexpensive plastic or grenaditte model.

For beginners, start with the plastic Aulos baroque flute in A=440 or an inexpensive wooden baroque flute.
For intermediate and advanced students, try a wooden A=415 flute by Simon Polak, Boaz Berney,or Von Huene. A complete list of active makers is maintained here.
General Care & Maintenance Guidelines
Simon Polak's First Aid Recommendations
Kelly Nivison's Flute Repair/Restoration Info