Rapid fire:
1. Toys mean more if they're not handed out like candy on Halloween. My PCs give their +2 swords names. Monty Hauls get boring, quick.
2. Not everything has to be epic. Best game I ever ran was just about traveling down a road.
3. Monsters are people too. If they live somewhere, there's going to be evidence of it, like a bed, or personal effects. They might not want to jump to their slaughter after watching 6 of their friends die. Even the dumber critters (such as kobolds) know better than simple frontal assaults- get creative.
4. There's a fine line to be tread between success and failure. The PCs should not succeed at everything... no matter how much you may want them to. They may succeed in areas they shouldn't... no matter how much you DON'T want them to. Remember, it's a story, and failure works thematically. Be prepared to improvise when they throw you curveballs. Players should be rewarded for creativity, but penalized for abuses- BE CAREFUL.
5. YOU ARE THE FINAL ARBITER OF ALL RULES. Brook no argument. D&D tends towards a certain adversarial relationship 'tween DM and players. Listen to your players if they question a ruling, but if you've made your decision, stick to your guns.
6. Screwing the players can be loads of fun, but you gotta be careful with it. Just as being too easy can get boring, being hamstrung at every turn will demoralize the players, they'll lose interest in the game.
7. Avoid 4th Ed.
8. Most importantly, relax and remember it's all about having fun. That's all of you.