Hello Sarah! I am fine, thanks for asking. 
To start with, your new camera will be ablel to take photos and output them as two different types of files. One is JPG that I am sure you have used before. JPG is a great file format for photos because it can be compressed. That means it will take up less space on your memory card and HD. It is also a very common file type so you can email it to people, put it on the web, and open it in just about any program. (ie insert a nice picture into your Word doc).
Where JPG falls short is when the little computer in your camera compresses the file, some data is lost. So if you try and do a lot of post processing in Photoshop or something you will have less of the original data that was there to work with.
So, your camera also does another file format, RAW. Think of RAW as a digital negitive like you used to get with your film prints. It has 100% of the data that was captured when you took your photo. This gives you much, much more headroom when you are using PS or something else to make adjustments.
For example, lets say you took photo with the white balance set wrong. With a JPG it would be harder to fix and you might not even be able to do it. With RAW it is a simple couple of clicks and it is fixed with no real loss of quality. Same for adjusting a messed up exposure. With a RAW file you will be able to fix bigger mistakes, then with a JPG.
This comes at a price however. First you have to use a RAW file processer or converter to convert your files to a more usuable format like JPG or TIFF. It is not hard to do, but if you have a pile of 20-40 photos that you just want to email/print/put online, you need to processes them first. The second thing is the files are much larger. Depending on the subject a JPG file might only be 3MB where a RAW might be 8MB or more. So if you only have a 1GB memory card you will be limited in the number of photos you can take. (until you move the files off your card).
As for software that will do this, your camera will come with some. It is called Digital Photo Pro (DPP), there are also several other ones too. Some are even free. The best thing to do here is use a couple and see what one you like best. Then try and learn as much as you can about it. All RAW processers have many different settings and things to adjust. The more you know about them, the better your photos will be and the less time you will spend processing them.
If you are looking for a good book. Real World Camera Raw with Adobe Photoshop CS2 by Bruce Fraser is a wonderfull book. You don't have to have CS2 to read the book and learn more about what RAW is and why/when to use it.
Last I will just say, you don't have to learn all of this the first day you get your camera. You can just shoot JPG for a while and get used to everything first. Then when you are ready shoot some RAW and get a feel for that. Some people don't ever shoot raw, some only use it. In the end it is what fits with your personal perference and how much computer time you want to put in on your photos.
There are lots of good forums on the web, including this one. People are usually very helpfull so if you get stuck or have a question just ask. You can also use the search feature as there is a ton of great info already posted.
Take care and congrats on the new camera~
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