Setup: It is best to setup on a hill over looking large field with the wind blowing in the direction that you want the coyote to approach from. Coyote's will normally circle around so that they can wind you.
Gun: There is no such thing as a perfect Coyote gun. Gun selection varies greatly on personaly opinion and terrain. Also remember that unless you want to sell the fur there is no such thing as to much gun. I use a 30-06 wtih 125 grain bullets and it works great.
Caller: I use a Johnny Stewart MR16. It has worked very well for me. If you prefere no tapes then the FoxPro digital caller is very good.
Electronic callers are a common choice for beginers and experts alike, I prefere electronic because you get more distance and it will never hit a wrong note.
Camo: Some people think that camo is not necasary when hunting coyotes. I am not one of them. In my opinion camo is extremley helpful. It gives you the abbility to call the coyotes in much closer then you would without it.
Make sure that you cover your hands and face esspecially if you tend to move these around alot while hunting.
Decoy: I place my Feather Flex rabbit decoy about 20yds in front of me. Make sure that it has the ability to be blown by the wind. Coyotes will be attracted to this movement.
Decoys will work much better if you use rabbit distress calls with it.