You'll receive all sorts of answers to this question.

Nearly all modern dynamo hubs have the same output. The Sanyo is perfectly good enough for commuting and general use, but I'd go with something more expensive for a high zoot build. Personally, I use a Shimano 3N-80 and a VO switchable. I'll try a SON someday. I've built front wheels with the Sanyo H27 for both my mother and father.

You need a decent spoke wrench (I use Park). A tension gauge is helpful, but the more wheels you build, the less you need one. I don't build wheels without a dishing tool. I recommend The Bicycle Wheel. Read it and have it handy as you lace the wheel. Take your time and you will be rewarded.