I'll take a stab at some answers, since I've been asking so many myself recently :-)
You can't play audio CD's without some upgrades.
Your Kickstart and WB are current.
You probably will want to get WHDLoad to play games from the hard drive.
You can use apps like MUI, Newicons, and ClassAct to dress up the desktop, but I personally think OS 3.9 is the best way to dress it up. You can also use ClassicWB or AmigaSys to dress things up.
You can get tons of apps at
http://aminet.net Check
Lemon Amiga for game info and links to places to download them.
I'm gonna watch this thread myself to see what recommendations the Guru's give you.
Have fun!