I use a Wal-Mart compass, the one with the flat clear base.

Get a good topo map of the area you're going to hike and play around triangulating your position with the map and compass. Also use your map and compass to check your position on the trail every now and then. Forks in the trail, creek crossings, peaks, and the start of steep inclines or declines in the trail are all good places to check your position. Once you get the hang of that your pretty good to go wherever you want, on or off trail.

I'll suggest you visit Jason Klass' web site. He's got some great videos and instructions on "Homemade Backpacking Gear".

Craigslist is a great place to find high quality used backpacks and other gear. If you haven't got all your gear yet you could do well to check what's there before buying new.

I recently posted a message about "Trip Planning" and so far there have been some great responses. The gist of that thread is that your backpacking trips can be just a night or two long, close to home, and still be a lot of fun and provide a great deal of real experience, and how to plan trips for those goals.

Finally, welcome to the forum! Your friend did indeed point you to a great resource and I hope you enjoy your time in the wilderness as much as I have.

Bill