Step 3: Clean & sanitize
I use Starsan (also from your homebrew supply shop). Starsan is a "no rinse" sanitizer, so it's easy to use. Just follow the instructions on the container.
You can also use bleach and water - use about a tablespoon of bleach to 1 gallon of water. If you do this be SURE to rinse VERY WELL after sanitizing.
I keep a 5 gallon bucket on the side that I keep my equipment in - soaking in sanitizer - until they're ready to use.