Check out a column on saving for college at this link:
http://www.minyanville.com/articles/college+costs-+saving/index/a/24201#
To read Lynn O'Shaughnessy's post on how much 529 plan savings will affect your expected family contribution (EFC), derived from the Free Application for Federal Student Aid (FAFSA), click this link:
http://moneywatch.bnet.com/saving-money/blog/college-solution/the-no-1-fear-of-529-plan-investors/2164/?tag=col1;blog-river
For a list at FinAid.org entitled "State Tax Deductions for 529 Contributions," check out this link:
http://www.finaid.org/savings/state529deductions.phtml
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