Inu-Yasha
This extremely arrogant, insensitive, pompous, can-be-annoying JERK (although a very cute one) (you realise I really don't mean he's a jerk) (a very, very cute one) is half-dog demon (father), half human (mother). He once tried to steal the Shikon jewel (in order to become a full demon) from its protector, only to be put into a deep sleep for 50 years. By a cruel twist of fate (and the command "Sit!"), he is now forced into helping Kagome put the shards together again.
Kagome Higurashi
Kagome lives in the modern era. On the day she turned 15, she was pulled through the Bone-Eater's Well back into the feudal age, where she was attacked by a centripede demoness. During the fight, the Shikon jewel was rediscovered in Kagome's body. This and the fact that she looks exactly like Kikyo lead everyone to think that she is Kikyo's reincarnation, and thus the new protector of the jewel. Ironically, she was the one who shattered the jewel into small pieces. Her greatest fear is not of demons, but of maths exams. She controls Inu-Yasha through the prayer beads around his neck.
Kikyo
Kikyo was (is?) a powerful priestess who guarded the Shikon jewel, which is said to grant any wish of its possessor. Kikyo was injured when Inu-Yasha snatched the Shikon jewel from her, and using the last of her powers, she 'killed' him with her arrow, pinning him to the tree, meaning to trap him till the end of eternity. The jewel was buried along with her, but somehow resurfaced in Kagome.
Kaede
Kaede is Kikyo's little sister. She became the village priestess after Kikyo died, although it is clear that her powers are not as great (and probably because she didn't need them as much). She was the one who put the prayer beads on Inu-Yasha, which gave him no choice but to help them.
Shippo
Shippo is a kitsune - a fox demon. Which means he is capable of changing his form to deceive his enemies (if only for a short while). Shippo met Kagome and Inu-Yasha when he was on a quest to revenge his father, who was killed by the Thunder Brothers.
Myoga
Myoga is a servant of Inu-Yasha's father. When he died, Myoga was given the duty of guarding his grave (though no one knew where that was at the time). Myoga, though very knowledgeable on all the demons, is rather timid, and always runs off when there is any sign of danger.
Miroku
Hmm...PERVERT. He's a priest who likes nothing more than 'copping a feel'. There is a portal (it's like a black hole actually) in his right hand - a curse by a demon called Naraku. And if he does not defeat Naraku, he shall be devoured. He and Inu-Yasha never seem to get along, mainly due to the attention the former is always paying to Kagome.
The Higurashi Family
As Kagome said, everything about her family seems to have some 'legend' associated with it. For example, the Shrine, the Well, the tree outside. Her 'Gramps' seems to know a lot of history about these sorts of things, and he never tires of trying to tell Kagome and Sota. Also, he's not very good at telling lies. Buyo is the cat, and it's the reason why Kagome was near the Bone-Eater's Well at time when she was pulled through. Her mum doesn't seem to have a major part. Sota is Kagome's brother.
The Bad Guys
Mistress Centripede
She has six arms, and a lot of little legs. She appeared out of the well and dragged Kagome into it. She bit Kagome and the Jewel fell out from the wound.
The Crow Demon
It feeds on human flesh, and it tried to gain the Shikon jewel by worming its way around in the leader of a Samurai gang. It swallowed the jewel and almost got away, until Kagome shot her magic arrow which shattered not only the crow, but the jewel as well.
Yura of the Hair
She manipulates people by hair which is only visible to certain people (eg Kagome and Kaede). The hair can easily cut through flesh, and she has a large collection of skulls from which she weaves the hair from.
Sessho-Maru
Inu-Yasha's half brother. He is a full demon, who cannot understand his father's affection for a human. He loaths Inu-Yasha (the feeling is quite mutual), and he tries to steal the Tetsusaiga from his father's grave.
The Thunder Brothers
Hiten and Manten. The latter only had three hair, and was very upset when Kagome shot down two of them. He captured her in order to use her as a hair potion. These two are the ones who killed Shippo's dad.
Urasue
An ogress and a sorceress, she stole Kikyo's bones from her grave in order to bring Kikyo back to life. The plan backfired, cos the first thing Kikyo did was to kill HER.
Kikyo
Thought I should include her here, since she tried to kill Inu-Yasha. When she came back, Kikyo said that she could not let Inu-Yasha live because he betrayed her. The problem is, Inu-Yasha couldn't kill HER. But he thought she died when she fell off a cliff, trying to drag him along with her. Now she's just causing a lot of trouble.
Naraku
A demon which takes on the form of other people. It turned out that 50 years ago, it was Naraku who attacked Inu-Yasha and Kikyo, making them believe it was the other person. Naraku was born from an invalid called Onigumo (I think that's his name...) whom Kikyo looked after. However, he couldn't stand seeing Kikyo becoming weak because of Inu-Yasha, so he set about destroying the latter (but he stuffed up and got Kikyo killed as well)
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