The Difference Engine, William Gibson & Bruce Sterling. This novel is to steampunk as Gibson's Neuromancer is to cyberpunk. Not just useful source material, but also a ripping good yarn.
Space: 1889, by Frank Chadwick (GDW). Heavy on the steam, and almost totally lacking in punk, but nevertheless an excellent place to go for flavor. You could run a Babbage campaign here with a minimum of retrofitting.
Castle Falkenstein, by Mike Pondsmith (R. Talsorian). The reigning steampunk game, and with good reason. Babbage gets a mention in the rulebook. Be sure to check out the "Magic Works" option first.
Babbage's World
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