I agree, if you don't have a more expensive fast lens, shutter priority is better when it's not sunny. Wih aperture priority you end up using the lowest f number anyway, and the camera will choose too long shutter speeds.
I prefer using shutter priority or full manual, and sometimes underexpose to have faster shutter speeds, and re-expose it afterwards in photoshop. In daylight pics you can easily correct 2 stops in photoshop without much quality loss, especially if the pics are only used at low resolution on the web.
ISO is the sensitivity to light, higher means more sensitive so you can use faster shutter speeds or higher f numbers to get the same amount of light in your pic. Drawback is the higher the iso, the more noise you'll get. You have to test how high you can go before the noise is too apparant. I have a D60 and ISO 800 is still ok, 1600 is not, and 3200 is crap :-)
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