Most envelopes are constructed of high-strength polyester or nylon fabric treated with a special coating to reduce the porosity of the material. Shown below are envelopes of various manufactures.
The most popular balloon baskets are hand crafted from rattan wicker. Wicker is the most commonly used material for basket construction because it maintains the ability to flex, absorbing and distributing any bumps during landings. The basket contains flight instruments, propane cylinders, and a burner system which acts as the "engine" of the balloon. The passengers and pilot stand in the basket during flight. Shown below are baskets from various manufacturers.
The burner system acts as the engine of the balloon. It is fueled by propane just as a home barbeque grill. Shown below are burners from various manufacturers.
Our basket carries 40 gallons of propane distributed between four tanks. All four tanks are connected by a manifold to the burner.
For more information on how hot air balloons work, check out http://travel.howstuffworks.com/hot-air-balloon.htm from Howstuffworks.com