new to prepping (haven't started anything yet)

as far as communications go what would be useful for knowing what the situation around me is?

scanners, am/fm radio?

Can you guys recommend some reading material and gear?

HAM...outdoors....amateur radio forum.....they have "read me " stickys

http://www.ar15.com/forums/topic.html?b=10&f=22&t=604477

also see this recent thread,
http://www.ar15.com/forums/topic.html?b=1&f=5&t=1143360

and this
http://www.ar15.com/forums/topic.html?b=10&f=18&t=644677

and this
http://www.ar15.com/forums/topic.html?b=10&f=22&t=643828

that should keep you off the streets at night for a while.  

ar-jedi

I like a small portable AM/FM/SW radio.  Then add a portable TV/DVD player (Great to entertain kids now and even better when SHTF and you want to see the news).  Finally, I have an IPhone and the "5-0 Radio" and "Tunein Radio" are two apps that let me listen to police or EMS scanners or a huge number of radio broadcasts.  Of course, with the smart phone the internet may be available or may not be so it can either be a huge tool or a glorified PDF reader.

For 2-way Comms, I have a bunch of FRS radios, a walkie talky style CB, and a car mounted CB.  

Some day I would like to learn more about HAM radios but this is where I sit when it comes to Comms at the moment.

An amateur radio license is a very worthwhile endeavor and the absolute best you can do in this regard.  Until you work up to that point, here are some other recommendations/stepping stones:


MUST-HAVES

- A radio that can receive AM, FM, WX (Weather Band) and shortwave.  I have a Grundig Yacht Boy 400 that does just fine.  My Grandad had one of the old school ones.  The newer models are nice and digital.  You will have to account for batteries (which is another topic you may want to add to your preps).  Radio is one of the most durable means of communications.  The shortwave lets you hear other countries in the event of a global event. Even if you go the HAM route, I would get a nice portable radio that does everything.  I have seen the crank shortwave radios.  Make sure they can be run off battery as well.  Cranking gets old when you don't have to.  It gets downright crappy when you don't have a lot of calories to spare and are already hot and tired.

- Signal mirror.  Get one with an aiming hole like a Coghlan's.  I got mine at REI with the annual dividend check.  They can probably be found much cheaper at Cabelas or your local outdoor/sporting goods shop.  The only thing finer than American bourbon, German sleds or Brazilian booty is Japanese glass.  Bazillions of photographers and Coghlans signal mirror owners will back me.  

- Signal whistle.  A good friend told me not to be cheap here.  Aside from the obvious survival/rescue applications (remember...3 blasts means "Help!"), a LOUD signal whistle can startle predators in a pinch  (both 2-and 4-legged variety) and draw attention to yourself in city environments.  The AR15 rule of "One is None" applies here.  Many of your backpacks will include a "buckle whistle.  If not, there are plenty aftermarket examples out there....  I carry a wind storm (smaller version of the storm) and have an integrated whistle on my pack.  

- 3 ways to make fire.  Fire is a signaling tool.  Read up on how to make a proper signaling fire.

- Mobile phone with spare batteries and two ways to charge it.  That could be AC and 12v, AC and solar OR AC, 12v and solar!!  For normal phones, minimum 2 extra batteries.  If a smartphone, no less than 3-4 due to the massive power usage of today's smartphones.  Make sure it has an SMS plan, as this seems to be the most reliable in emergencies where voice congestion occurs.  


NICE TO HAVE:

- 2-way radios..."Walkie-talkies" have a place if you've got multiple people.  Unless you two are holing up in a one-bedroom shack, radios make things like patrolling and defense possible.  I would go so far as to call them a force multiplier.  Again, battery/power management and standardization is key IMHO.  Go ask the guys in the Amateur Radio forum before purchasing, but know that the rated distance on the box is usually not so good.   If you decide to go this route, it would be a good time to start learning basic radio theory.  I don't know if Radio Shack still sells books on the subject, but I guess you could find the same for free on the Internet.

- Digital Radio Scanner.  I DID say digital.  Your daddy's scanner probably won't let you hear LEO's (who have moved from analog to p25 and other digital systems). The only reason I did not put this as a MUST HAVE is because of price.  Listening to your local constables during peace time gives you a look behind the curtain.  My scanner is my early-warning system.  I hear bad things before I would on the news, etc..  In SHTF, they're invaluable.  You can also hear public works, private security guards, and even some military chatter.  The newer models have frequency counters that can detect and automagicallly tune-in to nearby signals.   I would recommend a hand-held like the BCT396T.  There are newer, shinier models.  Ask the radio guys for up-to-date info.


IF YOU JUST WANT TO GO THE EXTRA MILE

Personal Locator Beacon - Less for SHTF, but worth a mention.  These have gotten cheaper and more sophisticated.  Though I don't use one myself, they are approaching the price point where I'd be dumb not to.  Many of us are actually hardcore campers/hikers.  That means long hikes, ultra-light packing, plenty of trust in your gear and lots of luck.  Unfortunately, you sometimes run out of the luck.  These help rescuers find you easier. If you are in an arctic location, many of the newer ski jackets have passive locators already built-in for avalanche victims.  Helly Hansen is one such company.

Strobe Light - Some say this is even a must-have.  Some of your existing lights may have a strobe function, but I'm not sure thaI would want to make my primary light my strobe.  If I were to add one to my pack, it would be a dedicated model.  Admittedly, I have no experience here, so perhaps someone else can comment.  

Flares - Pen flares for the BoB perhaps?  Road flares should be part of your car kit along with an emergency triangle.  CDL 101

ETA:  I will add CB radio here.  On the few road trips where I fire it up, I do get traffic.  And even some other than truck stop whores peddling their nasty goods.  If you have one or can get one cheap, why not??  And understanding of radio theory is almost a must at this point.  Your next stop WILL BE HAM Radio!!

And to the OP:  I know you said devices for knowing what is going on around you.  I simply classify communications and signaling into one category.  Sometimes we forget the obvious, so that's why things like mirrors and flares are in my post.