BioBrite Sunrise Clock
Sunrise clocks are an excellent tool for tackling the lighting portion of the sleep dilemma. A sunrise clock does exactly what the name implies, it simulates a sunrise. The gradual increase in light gently wakes up most people but even if the alarm clock kicks in your body will be more primed to wake up, alleviating sleep inertia, which means you'll wake up less groggy.
The BioBrite Sunrise Clock is a very popular sunrise light and definitely gets the job done. It has the expected sunrise feature and also has a gradual sunset to help you fall asleep faster. It has adjustable intervals to extend and shorten the dawn and dusk time.
While I'd never put a price on a good night of sleep, if you're on a budget the Philips Wake-up Light is a good enough solution. It has the sunrise effect you'd expect but with a fixed 30 minute timer. The other major limitation is that it only brightens to the brightness setting you last set it to so I would not recommend using this as a reading light since you will have a tendency to dim it too much.
Philips also makes a more feature rich alternative for those who want more options. This higher end Philips Wake-Up Light is comparable to the BioBrite in price and feature set but has better controls, a colored sunrise, and comes from a more well known manufacturer.