So when I think of baby items I could not live without, this would definetly be near the top. It's called SwaddleMe by Kiddopotamus, you can get them at Wal-Mart, Amazon, etc. It may look like a baby-sized straight jacket but I really think it helps baby sleep. When babies are in the hospital they "swaddle" them real nice and tight. This is the same idea, but velcro helps keep the blanket in place. So if you are getting ready to have a baby, I would definetly recommend this.
Also check out the super cute rag quilt Sydney is lying on. My friend Lorraine made it for her, this is also another baby item I could not live without, okay maybe I could, but I sure do love it.