I also used stitch n bitch. I found the diagrams to be very helpful (even if the bad puns in the section headings got tiresome). The hardest thing for me was figuring out how to switch from a purl to a knit stitch, but I just sat myself down with some white cotton yarn and went step by step until it clicked. I agree that seeing it done in person was very helpful also. The cool thing about knitting is that you can usually go up to anyone you see knitting in public (if you have a quick question) and usually they'll be more than willing to help you out.
Quick poll: Do you guys think its easier to learn with a bulky yarn?