The following is a list of recommended resources that can be used openly by anyone on the internet. Some of these are free, some you will have to pay for.
If you are going to do it yourself, buy this book right now. It is the best one on the market. We do this for a living, and we still have an ongoing subscription with him. He's good, really good.
This is google's official toolbar, it is usable in both internet explorer and firefox... but if you have FireFox I would advise using the following unofficial toolbar
If you have Firefox - this is much better. Use this one over the Google tool bar, it's much more useful!
Find duplicate content; check if anyone has stolen your website.
Really useful to track back links.
Great link tracking tool.
7 day free trial here. Industry standard for keyword research and analysis.
Free Analytics from Google. This is really great kit, as good as anything you would pay for. The only down side to this is that you are reporting to everything you do to Google. If you are planning to do anything tricky, think about paying a private company for your analytics.
Keep an eye on you rankings within the engines everyday. This allows you to export results as a CSV file so that you can compare results over time.
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