I taught myself with a kids knitting book from the library. I woudl suggest getting a kids book since the instructions tend to be simpler, some nice needles (I like wooden ones), and some fairly thick wool yarn.
It has videos you can watch that are just a few seconds long. I replayed them over and over, until I got the stitch. I did that for just about every stitch they have on there, and then I picked a pattern (the LTK longies) and started. When there was something I didn't know how to do, I either looked for a video on that site, or went to a local yarn shop for help. I did eventually buy a beginning knitting book, but the videos were really what got me started. I hope that helps! Have fun!
Anne wife to Phil & mama to Katie Velvet Blue ::: Seattle Baby/Child/Family Portraits
I bought Knitting Basics and I really like it. Before that I had a little Leisure Arts 'I Can't Believe I'm Knitting' booklet that i bought at Mike's. I have taken one beginners class at my LYS. That was to make sure I was learning correctly from the book.
Married to my high school sweetheart. We have four awesome kids.
I bought a packet of stuff... a book, needles, and some other things for knitting (stitch holder... things like that) called I Can't Believe I Taught Myself How to Knit. There is a crochet one as well. There is also a CD Rom series on teaching yourself... it is VERY good... I think it is done in conjunction with Red Heart yarn.
There are a lot of good instructional aids out there, and sometimes the best one is the local yarn store. I have a woman who is very helpful.
I basically learned to knit and purl by getting a detailed instruction book and having my mother-in-law help me start. Since then, I have learned by asking questions of friends and knit shop owners, and by searching on the internet for detailed pictures and instructions of individual techniques as I came across them in patterns. You mentioned there being one craft store that sells knitting supplies; I'm not sure what type of store you mean, but I think to truly get help from a store you need to find a dedicated knit shop. Here is a link to stores in Colorado that sell Rowan, a yarn company that I happen to like a lot. Anywhere that sells this yarn will be able to help you learn. Most shops will give you help with any project for which you bought yarn at their store, and some nice ones will help you with other projects, too.