Denise...OK...here goes. I'll do my best to explain without taking up the entire page!
There is no zoom like you would be used to with a point and shoot. It all depends on the lens you are using. They can be almost as expensive as the camera itself. I have a 300 mm zoom in addition to the standard one that comes with the camera. Most times for just my everyday stuff I take of Jersey around the house, the 18-55 mm lens that comes with the camera is good enough for me. You can zoom in and out with the lens by turning the barrel on the lens itself.
ISO = film speed (like you would have used with film cameras).
AF = auto focus. If you aren't used to a digital SLR, I would just keep it on the one shot auto focus (which is the default).
WB = white balance. What type of light are you shooting in? Bright sunlight, clouds, tungsten, fluorescent, etc. I usually use auto white balance and let the camera decide what is best. Sometimes though you want to be sure the camera is accomodating for your lighting situation. I use this often.
The set button lets you make your selection, along with the arrows around it, for those options I just told you about.
Now, the other letters on the dial are a little trickier to explain. I don't know how much knowledge you have of photography. I've been studying it for almost 20 years now, so I hope I don't end up confusing you even more.
A-dep = automatic depth of field. This setting allows the camera to determine the right depth of field if you have a setting with subjects at various distances from the camera. For example, you are photogrpahing your sons soccer game and want to get all the players on the field in proper focus.
M - manual setting. This is what you would you if you wanted to choose your shutter and aperture setting on your own. I use this a lot, but I learned photography on a camera that only had manual settings. It gives you a lot of control over how the end photo comes out.
AV = this lets you choose the aperture you want to use while the camera selects the shutter speed.
TV = is the opposite of AV. You select the shutter speed and the camera selects the correct aperture.
P = this mode is sort of a combination of manual and auto. You can manually change the settings if you want to or just let the camera select for you. I use this setting a lot too.
I hope I didn't confuse you even more. I bought a book on Amazon. It's the Digital Rebel Field Guide by Charlotte K. Lowrie. I use it a lot. I think it's great. It explains every button and setting on the camera plus it talks about how to photograph in all different settings/subjects/scenes. It wasn't too expensive either...less than $15.