I'd pretty much agree with anomaly. But I think the 100mm+ range is a bit too long/tight for most portrait work. The 50mm and 77mm are probably the best. With the sharpness, good colour rendition and speed these are tough to beat. Speaking of speed they offer the advantage of being very good in low light so you can take advantage of natural lighting conditions in many circumstances.
Another strong contender is the 43mm Ltd. Maybe a tad to wide for some situations but produces a wonderful image and is also very fast. I personally wouldn't consider anything shorter than the 43mm for this type of shooting.
The flash issue has a wide variety of choice and opinion. I shoot with an Af400T (older TTL) and an AF540FGZ. With the 540 I use one of Gary Fong's 'Lightsphere' diffusers. Check the web site for a demo:
DOMES It's a bit pricey compared to the typical push on diffusers but worth every cent when you see the results. Smooth and even lighting and most of the time you would never know a flash was even used (which is the whole point). I still like the AF400 though and with it's variable power levels I am happy with the results. It takes a substantial learning/practice curve with a digital camera but worth the time.
I've heard the Sigma EL500 Super is also a great choice. Some report it to be easier to use and of course at about half the price of a 540 it makes getting a good flash possible. There have been some reports of reliability issues mentioned here but I don't think that's too widespread.