J.B.
A states-sponsored savings plan is a great place to start. In a 529 plan, your money grows tax deferred and you get a tax break on your contributions. You have a variety of investments to choose from and a variety of account types. You retain ownership of the account, so you can change the beneficiary of the account at any time, and the assets are not considered to be owned by the child when applying for financial aid.
Pennsylvania actually has some great additional features that, IMO, make your state's plan very attractive. You can find the info at http://www.pa529.com/learn-program-benefits.html. If I were you, that's where I would start. These are good plans and there really is no need to fiddle with other investment vehicles when there is something designed specifically for college.