I got the Canon Rebel XT this past April. I couldn't be happier. It was my first ever SLR camera after using point and shoots all of my life. This camera will still do "pont and shoot" photography right out of the box and do a fine job at that for most standard situations. The user manual is really great and I found it instructional and pretty easy to follow and understand...even for a novice like myself.
I'd suggest taking it a few pages at a time and then practice with it before proceeding.
It's all digital images...so shoot lots of pics and tinker with various settings and light. All of the camera settings are stored with the image so you can refer to them with each picture. It comes with what I consider to be pretty good bundled software that displays all of the setting information as well as allowing you to do some serious editing of your pictures.
I shoot strictly in RAW format now which with the bundled software allows you to make all sorts of fine tuning and adjustments to make it look it's best....and in my case save some images that I didn't shoot with the correct settings.
Then you can convert it to whatever format you please. It even has a batch function that allows certain adjustments for a whole bunch of pics.
Overall, I hear you about the learning curve and I was intimidated myself by it. But, looking back, it wasn't all that bad and I am absolutely happy that I did. I'll never go back!
I've got an online gallery listed below in my signature. Feel free to browse through there and when looking at the full picture, click on the little "i" icon next to the image name and you'll see all of the camera settings I used. Maybe that will help as a basic guide.