I would suggest that you spend an hour or so online and get somewhat familiar with the basics of exposure. There are 3 basic parameters, shutter speed, aperture, iso. Learn how they relate to each other to create the proper exposure. Learn the advantages and tradeoffs of varying each parameter. THEN read the user manual. With exposure basics clear in your mind, the manual will make more sense. Except for autofocus modes. They will take some time to soak in.
Like backdoorhippie says, you can reset your camera if you mess things up. I go a step further and suggest that you reset your camera settings often for a few weeks to make yourself get comfortable diving into the menus to get your settings back.
I like to tell beginners to try Picasa free software. Very simple interface and you can quickly do minor tweaks without frustration. Fix redeye, straighten, crop, etc. You will get positive results quickly. Then as you learn the limitations of Picasa, you are in a better spot to know what you want from an editor/organizer. Picasa has a nice little feature to create a 'gift cd'. You put some pictures on a cd and it sets it up to auto-run a slide show. Really great to give to grandparents and other computer challenged people. Beyond Picasa, take a look at Lightroom and Photoshop Elements and the ViewNX that came with the camera.