Learning about Yarn

After Christmas, I have been itching to get back to knitting and have been thinking about special projects I want to begin. I want to learn new things while I make new projects. Right now I am thinking all about yarn.....

In the world of yarn there are different types, textures, and sizes you can use for knitting. I am refreshing some of that knowledge with my Stitch and Bitch book and have also found the Knitting for Dummies book very useful.
The biggest thing I am learning about yarn is that when you go to the local yarn store, it is expensive! I want to stray away from acrylic but so far it is in my price range. Boo whoo. I have only slightly explored the bargain bins at my local yarn shop (now that I know they exsist) but I have also learned that while exploring those bins, I need to know what type of yarn I am buying and what it can be used for.
I feel like I am just learning about the technical things about knitting. I am sure people get by without understanding everything but I really do want to improve so I am taking it step by step.

One reason why I am taking an interest in yarn now is because I want to make a baby blanket for one of my good friends who is due in July. I want to use good yarn but when I went to buy some at the yarn shop it ended up being $75. Not what I want to spend right after Christmas. So I will continue exploring, and searching the web (I know "shop local") to find just the perfect yarn and the right price. I want to know how to make great gifts without spending all my cash money.