  (Abridged) In this review we focus on the observations and theory of the
formation of early disks and outflows, and their connections with the first
phases of planet formation. Large rotationally supported circumstellar disks,
although common around more evolved young stellar objects, are rarely detected
during the earliest, "Class 0" phase; however, a few excellent candidates have
been discovered recently around both low and high mass protostars. In this
early phase, prominent outflows are ubiquitously observed; they are expected to
be associated with at least small magnetized disks. Disk formation - once
thought to be a simple consequence of the conservation of angular momentum
during hydrodynamic core collapse - is far more subtle in magnetized gas. In
this case, the rotation can be strongly magnetically braked. Indeed, both
analytic arguments and numerical simulations have shown that disk formation is
suppressed in the strict ideal magnetohydrodynamic (MHD) limit for the observed
level of core magnetization. We review what is known about this "magnetic
braking catastrophe", possible ways to resolve it, and the current status of
early disk observations. Outflows are also intimately linked to disk formation;
they are a natural product of magnetic fields and rotation and are important
signposts of star formation. We review new developments on early outflow
generation since PPV. The properties of early disks and outflows are a key
component of planet formation in its early stages and we review these major
connections.
