Things we are doing to prepare for baby #2:
Reading - we decided to get Owen used to the idea of a new baby by first reading books. My favorite so far has been "Cornelius P Mud, Are you Ready for Baby?" The others at the library haven't impressed me - mostly because they have full pages of words, and don't quite work with a 2 year old with a short attention span. I've gotten good recommendations for "We have a Baby" and "I'm a Big Brother" so maybe those will be in my next Amazon shipment.
Talking - Owen now says that mommy has a baby in her tummy. Good start.
Big Boy Bed - we bought a great little bed for Owen at Ikea and figured we'd build it for him in the fall, but he was really protesting going to sleep in the crib last week. Always wanted to sleep on the floor or in our bed. We thought we'd try setting up the bed and give him the choice of where to sleep for a month or two. Well, after helping us build the bed, he was so stoked that he took a nap in it that afternoon and hasn't looked back.

For the first few days, I don't think he knew he could climb out of the bed, but now Scott has deemed him the "Sleeping Ninga." When he decides to climb out of bed, he is SILENT. Our only warning in the morning is the clanging of his door handle, and last night he showed up in the kitchen (15 minutes after I put him to bed), grinning, and declared, "I have GOOD nap!" Scott and I were both fighting hard to keep the laughter at bay on that one. It looks like we have some bedtime battles ahead of us, but we've seen SuperNanny.

Baby Doll - Owen got to pick out his own baby doll last weekend. He was pretty excited, and knew just how to give the baby a bottle and put her down on the couch to rest. It made me realize that he's been around a TON of babies at daycare, so maybe we're in better shape than I thought.

Other Stuff - We're thinking about putting both kids in the same room. The more I read about the idea, the better it sounds, but we'll just have to see how it goes. I had high hopes of getting rid of the binky and tackling potty training before the baby arrives, but those things may not make the timeline.
What's missing from this list:
Anything relating to preparing ourselves for the baby. Oops. All those things that were all consuming in a first pregnancy have gone out the window this time around. I guess a 2-year old demands a bit more attention than a baby in the belly, though this baby is doing his best to make himself known though some wicked acid reflux for mom. (Ironic note of the day: I just got prescribed the same medication that Owen was on for 6 months as a baby.) We've talked a teensy bit about names and I made my list of "stuff" we need for this baby - 4 items - but I think it's a really good sign that my energy is focused on things other than stressing about having a newborn. We've done this before... and survived. There's something so comforting in that simple statement.