Windows XP Pro SP2

I posted in rec.games.chess.analysis last night, and they suggested I might
get better recommendations here. Anyway, I just got back into chess with
some office mates but I don't own a single piece of chess software. So if
one is not new to chess but is new to chess software, where should I start?
I'm not against spending some money on software (eventually), but for now
I'd like to get familiar with a typical setup. From lurking and surfing
I've surmised that I'll need an interface, an engine, some database
capabilities and perhaps some analysis features. I've seen all of these
available as freeware/shareware. I guess I'm interested in knowing what
people like, what they hate, what is considered standard, what products are
intuitive, which aren't, etc. I'm also interested in any sites or articles
that can explain what all the acronyms stand for. I deal with large
datasets daily, but not databases, so I can get around a computer just fine,
it's just that I have no idea what the typical files and file extensions are
for the various software components. I do know what PGN is, but I'm still a
little unsure of how all software pieces fit together. If anybody could
care to sum up briefly, in layman's terms, what a typical chess software
setup consists of and how the different parts interact it would be greatly
appreciated. Suggestions are obviously welcome as well.

Thanks!

-gk-