I think I learned best/most by taking photos EVERYDAY with the help of Peterson and Kelby's books as well. The link Jen mentioned is to digital photography school. They send a daily email with technique help. Do join us at the Flickr group (pink F below). Low pressure, supportive group to help you achieve what you want.
And to answer your question why? When you move off of auto you can have more creative control over your camera. You can correct for funky lighting that your camera doesn't know how to handle (like back lighting) and you can use all of the buttons on your camera to their full potential.
I'll be teaching a class over at Debbie Hodge's website and will have a little something over here to help you very very soon!
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