The summary is as follows:
1. Remove your stuff (data, accounts, passwords, etc.)
2. Think about Sync (your iTunes account or theirs)
3. Configure Restrictions.
4. To Email or Not (if you do, configure it knowing you may not be able to limit it)
5. Choose apps (Control, restrictions, in app purchases, etc.)
6. Choose accessories (damage protection)
7. Talk (Good and Bad of Internet)
With talk of pushing K-12 education to devices like the iPad in the next 5 years, introducing your child to the benefits of the device while also teaching the potential dangers now is a good idea.