To comment on the intimidation: You need to learn and understand the basics.
variables
functions/methods
classes
objects
inheritance
(this is just scratching the surface).
You can do this in most any language. Python is a high-level language, so it abstracts you from a lot of the low level programming but for getting your feet wet it is a good language, I use it daily and love it.
Once you learn the basics those things can be applied to any language, it is just a matter of using the conventions of the language. Think of all programming languages being different dialects of the same fundamental language (the basic concepts of programming).
Ultimately, you need to decide what you actually want to do with what you learn. It is futile to learn a language if you are not going to have a practical use for it.
HTML and CSS are not programming languages.
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Compiling python...
Python isn't a generally a compiled language. The Python interpreter is what takes your Python code and translates it to machine code at runtime. At that time it may also create complied versions that are machine code ready (typically custom modules).
For now, I would think of Python like this: When I run my python code through the Python interpreter translates that code to machine code.
So Python files (.py) are literally like plain text files. There are style guidelines. PEP 8 is a must read if you plan to write in Python:
http://www.python.org/dev/peps/pep-0008/
Colored text is worthless if you don't know what it means. Colored text is syntax highlighting, in other words visual cues that let you know what you are looking at, be it a function or class.
My personal favorite is TextMate. The Windows folks are probably using Notepad++. TextEdit does not Syntax Highlight, nor am I aware of any plugins to make that the case. At the end of the day, you have to pick the right tool for you.
Try out different text editors and IDEs (Integrated Development Environment). I am fairly certain Xcode can do syntax highlighting for Python.
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Learning Python resources. This is really going to come down to what you want to do with the language. It is one thing to go through a book and get a bunch of examples that have no real world relevance, but is another to set out to create something and use those resources to assist you.
My recommendation is to use something generic that gets you into the basics of using Python. I would also recommend that you avoid videos, for a few reasons:
1. The people you are learning from may be new and teaching you incorrectly
2. It isn't the proper medium for this kind of material. You will often find yourself having to skip backwards to see a line of code or to get some crucial definition. Unless the video is accompanied with: 1) source code 2) supporting material I would avoid (this rules out most YouTube videos).
This place will be your best friend:
http://docs.python.org/
Learn how to read Python documentation.
This should set you off in a decent direction:
http://www.python.org/about/gettingstarted/
Good luck.