Shooting at f/16 and playing with ISO is okay but I wouldn't get fixated on that. Concentrate on the playing rather than getting locked into particular settings.
Personally, although I'm only a "Pro" on Flickr, I do find that manual mode works best for me. I'm forced there to some extent anyway because my favourite lenses only operate in manual mode! I got out of auto mode pretty quickly when I got the camera (the whole point was to take control). Initially I mainly used aperture or shutter priority modes but full manual really isn't that scary after a little practise.
One thing I would do is make sure you have full control over ISO. Like aperture and shutter settings, adjusting it has side effects so I think is best not to let the camera make decisions about it because, while it can compute light readings very quickly, it has no sense of aesthetics!
Wulf
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Wulf Forrester-Barker << Sites: blog / flickr >>
Gear: Nikon D40, Nikon AFS 18-55mm f/3.5 - 5.6G, Nikon Series E 50mm f/1.8, Nikon AF 70-300mm f/4-5.6G, Vivitar 90mm f/2.5 macro, Raynox DCR-250, Lensbaby 2.0k, SB600
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