Six months ago, I bought a guitar and a DVD set called "You Can Play Guitar!" from Homespun Tapes. And almost every night since then I've been playing the guitar, going over the different exercises and songs from the DVD. It has been a rewarding way to learn!
I stopped watching the DVDs a few months ago, concentrating on the finger picking exercises from memory. On these DVDs, Happy Traum performs two songs called "The Fox" and "Shenandoah" that seemed outrageously difficult when I first watched them, but now I'm able to play both songs without too much problem.
I've cut MP3s of me playing these two songs in case you want to listen:
The Fox - 387K (24 seconds)
Shenandoah - 745K (46 seconds)
It's time to climb up the learning (playing?) curve some more. I just bought Easy Steps to Guitar Finger Picking. Let's see what I'll be able to play in December!