Straight up, now, tell me...

I have a confession to make.

I have yet to open a Roth IRA.

For the past year, I've yammered on to anyone who would listen about my grand retirement plans, but I've neglected to actually do anything. Now, with the economy downturn, I'm in need of some sound advice (and a push).

I am willing to contribute all or part of the 2007 max before April 15th, but keeping the current state of the economy in mind, what is the best move I can make right now?

Other factors to consider:

1. I saved 7 to 8 months worth of living expenses, the balance of which is sitting in a money market account, gaining only about the price of a movie ticket each month (because of plummeting interest rates).
2. My student loans > my savings account balance. The loans are quietly accumulating interest at a rate of 4.75%.

My original plan involved straight up index funds. Now, my options are as follows: a) do nothing, b) divert 3k+ from my savings into a new Roth IRA, or c) divert all but 3 months of living expenses to my student loan balance. This would still leave me about 9k in the hole.

Thoughts?