Andy, thank you so much for the description of those! I was totally confused by the terminology! I am just used to Cydia terms etc, so all this Android stuff is all new to me. I will check out that side of the forums! Thanks!
Also... I noticed my phone had the program Superuser on it. Does that mean the phone was rooted? I bought it off craigslist and it was factory reset, but that program still remains. Will that effect the ability to upgrade it to 2.3.3? And will I want to upgrade to 2.3.3 or is 2.2.2 better?