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The 32GB is always better if you can afford it. Each movie could be between 1-4 gig, so they can take up space pretty quickly on 16gb.
I also have about 9gb of music, so it fills it up quickly.
You don't *need* any other accessories, but if you want to project to your computer monitor, then get the RGB monitor cable adapter.
I also got a better wrap around case that protects the back, and still has a front cover that sleeps/wakes up the iPad when you lift it. If you do get an after market cover, make sure it has the sleep/wake iPad 2 function. Some don't cover the screen properly to turn the iPad 2 off.
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