Have to say I also hadn't got a clue about digital photography a few years ago and didn't want to spend loads of cash to find out. My first digital camera was a Kodak 2 megpix point and shoot compact very very basic ( try finding a 2 meg pixel camera now). previously I used a Voitlander VitoCL 35mm film camera which I still have.
I had the kodak compact for almost a year before I felt I was outgrowing its capabilities and dived into a proper DSLR camera, a Nikon D70s, to be exact and that was after considerable research into different makes. From there to a Nikon D200 and then to my present camera a Nikon D300 which I am at last totally happy with.
As already said we all have to start somewhere and my D70s photos were absolutely terrible ,I think a monkey could have done better, even now I am not happy with every picture taken but improved a bit on my first efforts.
One of the things about photography is that the word "new" comes up virtually every week on some bit of kit or other with a tweak here and a tweak there as an upgrade.
One of the big problems is deciding to stick with a budget and not exceed it which is so very easy to do, I think we have all fallen at some time or another in going for something just above what we intended to spend.
magazines often include a free tutoral disc so worth looking out for.
link
http://www.photoanswers.co.uk/
there are some very good video tutorials on this site if you care to have a look. the authors are very good with " how to do"
Realspeed