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There should be a sticky at the top of the Photography forum that was originally posted by Kelmar, it's a great interactive tool that shows you exactly what everything does and how it effects the picture.
ISO is simply the sensativity of the sensor to light. Higher the ISO the less light you need to properly expose the picture, but the higher you go the more noisy your pictures can get. For real clean pictures keep it at 100 or 200, but you'll be limited in shutter speeds if shooting inside w/o a flash at those ISO speeds.
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