Great advice from all!
My advice:
Before settling on the initial offer, be sure that you look over everything carefully...Sure, you can negotiate after the inspection, but the "unwritten rule" is that you can't ask for things that you should have noticed on your own. As for Inspector--be sure the guy has carpentry experience. If you do find things in the inspection, get your own estimates and negotiate the $ amount the seller is willing to forego at closing.
During the time between the initial acceptance and closing, make as few requests of the seller as possible. It's a thorny time and everyone is anxious and every comment/request is likely to be misinterpreted. Rely on your real estate agent to be the voice of reason of what to ask for and what to expect.
Don't buy a FSBO if you can help it...having a professional "middle (wo)man" reduces the stress level (in my opinion).
Oh, and the golden rule, "Treat others as you would like to be treated," works well for buying, maintaining, and selling your home.
Don't go with the lowest price inspector. They are worth it. pay for a *REAL* Inspector