Tips For Learning to Knit1. Makes friends with KnittingHelp.com it has videos of every technique I have heard of, from the basics to the advanced. It is the site that I used to teach me how to knit, and to understand exactly how I was purling. All online videos are free to use, and can be stopped and rewound until you "get it"
2. Read the article "It's the Little Things" (http://www.knitty.com/ISSUEspring07/FEATspr07KLM.html also linked from the article section) and free yourself from the garter stitch scarf as the first big project. Garter stitch is boring. I changed stitch patterns every 12 inches or so on my first scarf (and first project!) and I didn't even attempt to amuse myself with garter stitch. My second project was a simple sock. I promise, you can do whatever you set your mind to.
3. Check out Knitty (http://www.knitty.com/) an online knitting magazine full of free patterns, and Knitting Pattern Central (http://www.knittingpatterncentral.com/directory.php) a round up of many of the free online knitting patterns.
4. Get yarn you like. Yes the $.50 ball of yarn from the thrift store was a fantastic deal, but probably feels like knitting with sandpaper in string form. That doesn't mean that you have to get expensive yarn. I love Caron Simply Soft, an acrylic yarn sold at most hobby stores. It runs $3-5, and at 300< yards a skein, it gives you enough for a reasonably sized scarf. Local Yarn Stores would be more than willing to help you out with picking out a more expensive yarn (such and silk, cashmere ect) if you want to get more into natural fibers. I haven't had much luck asking about yarn at large hobby stores though. If you want more info about yarn, or some online resources for very affordable yarn, PM me and I am more than happy to help out.
5. Get a good set of needles. In this case, the thrift store could be a great place! I do not like plastic needles, because its hard to slide the yarn on them. If you don't want to purchase knitting needles, you can make you own out of the round bamboo chopsticks (http://maizehutton.com/chopstickknittingneedles.html). If you are going out and buying needles, consider getting circular needles rather than straight needles. The circular needles help keep the weight of your project in your lap, not on your wrists. Once I find a good explanation of straight versus circular needles I will post a link here, until then feel free to ask questions.
6. Don't get hung up on doing exactly what the person in the video is doing. Experiment a bit and find a way to hold the yarn and needles in a way that is comfortable for you. If you are producing knit fabric, you are doing it right!