Over the months I've spent developing a game, I've tracked down and noted some nice resources for game graphics and sound that I'd like to share with you guys. Graphics are especially hard to track down.
For music, I found MAGIX Music Maker MX capable of generating very good music scores. It is easy to use (very little music knowledge is required). I believe the music you generate with it is royalty free (as long as you are using the built-in samples or are using royalty free samples)