Built a small magic room under my tree and enchanted one of my diamond swords (Bane of Arachnids Level 1! WooHoo!)
Next goal is to head down into the Nether, find a castle, and grab myself a blaze rod so I can start brewing potions. So far though its pretty empy. During my one trip down I couldn't even find a Ghast. I guess it takes time for them to respawn.