From DDO wiki
Equipping a Paladin can be a challenge. The typical Paladin will want to wear +Stat items for Strength, Dexterity, Constitution, Charisma, and sometimes Wisdom. All this in addition to the usual array of Poison Immunity, Striding, and Heavy Fortification. One benefit for the Paladin is that most primarily-Paladin builds have sufficient saves so that a Resistance Item is not as needed; potentially freeing a valuable item slot.
A Paladin is proficient in Simple & Martial weaponry, as well as shields. This being the case, you could choose any damage type to be your primary weapon set. Most paladins use weapons with extraordinary critical range/multiplayer for synergy with smiting (often khopesh, falchion, scimitar).
If your starting race has a particular weapon proficiency, this would be a preferred choice to make. Picking one damage type & fighting style and sticking with it will increase the attack and damage done by your smite attack. Though that doesn't mean you can't carry others for particular enemies (an example being Bludgeoning for Undead or Oozes).
Don't forget that as a Paladin, you have access to Axiomatic & Holy weapons, and will suffer negative levels wielding Anarchic & Evil Weapons.
Also, Paladins have access to Faith based enhancements which allow bonuses to-hit for particular weapons. Unique weapon choices for these proficiencies are listed below:
Paladins are proficient with all armor types, so your armor choice is endless. A Mithral armor that provides Command or Sacred is always a good choice. And don't forget that you will suffer negative levels wearing anything Evil & Unholy.
Paladins are proficient with shields. Also a Paladin may choose the Tower Shield proficiency and takes the Defender of Siberys prestige class to make their shields much more powerful and increase their AC.
 Healing Equipment
Paladins have limited spell pool and usually don't use spells for healing. Instead, they often use wands (Cure Light-Serious Wounds). Lay on Hands ability depends on charisma, therefore, items increasing charisma are a good option.
Paladins with high UMD scores can carry some wands & scrolls for Raise Dead, Heal, and anything else you might be able to cast.
 Spellcasting Equipment
As a Paladin your spell list is quite limited (possessing no offensive spells) and your spell points are equally few.
Most of the spells you possess will be to augment yourself (Bonuses to attack, DMG, AC, DR), protect or cure your allies, or for healing. Keeping a Potency or other Focus specific item around to augment these would be ok.
Paladins will be able to use any wand that is specific to their class, plus if your UMD is high enough, you might be able to carry a wand for some distance attacks, to lure monsters to you.
 Example Equipment
This is an example equipment list for an Paladin. It should give an idea for what stats and abilities are going into each equipment slot, and lower level equivalents of most items should be available.