I'm a firm believer in keeping my characters cheap. They are there to lead, not fell armies on their own. I don't see a point in doubling the character's cost with equipment when I can buy another unit with the difference. Here are some of my set-ups
Grizzled Vetern (GotE) w/ Full Plate, Shield, AHW, Icon of Magnus. Leads my militia army.
General of the Empire: Barded Warhorse, Plate, Shield, Sword of Justice, Ring of Volans. Leads State army.
Captain: Plate, Halberd. Leads Halberdiers or Spearmen
Battle Wizard, lvl 2, Rod of Power
Battle Wizard, lvl 2 Dispel Scroll (or Seal of Destruction)
Battle Wizard, Lvl 2, Doom Fire Ring, Power Stone
*I am still new to this idea of putting a horse in infantry; it still feels weird to me, so my General is on foot half of the time.