Now I'll put my hand up and say that I am in no way an expert in home brewing with only 2 months and about 10 brews under my belt but I might just jump in here.
I watched for a number of years my neighbour homebrew, and all he did was get a coopers kit and follow the instructions on the pack - kit, sugar, and water in the fermenter, and pitch the yeast. To be honest, I had no enthusiasm to home brew from that experience. What did get me into it was going to the Bitter and Twisted festival in Maitland last year. My brother and I sat with the Hunter United Brewers all day, and we watched Mark from Mark's Home Brew (Newcastle) do an all grain. At the time much of it went over my head but my brother threw himself into all grain brews.
As for myself, I made a tentative step into it, and this is where I might be able to help you Steve.
This is my process.
Cooper's Pale Ale kit
Brew Enhancer 2
150g Crystal Grain
12g hops
Coopers yeast
Now before anyone jumps at me and says that the coopers yeast is rubbish, my aim was simply to see what would be produced, and to get the experience.
In a 10 litre pot, bring about 5 litres of water to 70 degrees and turn off the heat.
Tie the grain up loosely in a bag made of swiss voile and add to the water. This will bring the temp back to the required 68 degrees.
Put the lid on the pot and cover with as many blankets and towels as possible and leave for 60 minutes.
Take the grain bag out and sit in a strainer over a bowl. When the grain bag is cool enough, give it a good squeeze and add the liquid in the bowl to the pot.
Bring the pot with the grain flavoured liquid to a 30 minutes boil.
Near the end of the boil, add the BE2 and stir through
Add the liquid from the pot to the fermenter, and add water to about 10 litres.
Pour in Coopers kit and stir through.
Fill to 20 litres, put fermenter lid on and airlock, and sit on the verandah until cool enough to pitch the yeast.
When cool enough, put hops in tea cup, add some boiling water and cover with glad wrap for 10 minutes.
Pour hops and water from tea cup into fermenter and stir like a bugger to get as much aeration into it.
Pitch yeast.
I have done this process a number of times using Citra, Amarillo, Fuggles, Nelson Sauvin, Cascade and Pride of Ringwood hops, just to see what the hops add. From my experience, this is a nice step towards all grain, and with a 40 litre urn turning up tomorrow, that time will be upon me very soon.
The addition of grain and hops adds very little to the cost of the beer. I simply bought a kilo of crystal grain ($5), and 50 grams of each of the hops (about $5 each). What it adds to the taste of the beer is what's important, and I have been pleased with the results. No where near all grain quality but miles ahead of just the kit and sugar. My neighbour, the kit and sugar neighbour came over to taste my first beer, took one taste, and told me he was giving up homebrewing and that he would just come over to my place and drink mine.