I need some help setting up a budget...are there any computer programs that I can use?

Traditionally, there have been two major players in this market - Quicken and Microsoft Money.  New websites, such as Mvelopes.com, quickenonline.com, wesable.com, and Mint.com have been started recently that may also be viable alternatives.

What financial books do you recommend ?
There are many good books out there.  We particularly like The Automatic Millionaire by David Bach and The Total Money Makeover from Dave Ramsey.

What is an index mutual fund? 
Some mutual funds try to beat a specific benchmark, like the S&P500.  These funds typically charge an extra fee to pay for the fund manager and research costs.  Index mutual funds just aim to replicate the index, so they are typically much less expensive.