Hi Gaynor
That looks like a fairly good summary. And sorry for writing stuff that has caused you to 'glaze over'! Here are a few comments:
There are only three tabs in DPP 4 that require attention. The first is the 'Perform image lens correction' tab where you should check the box for 'Digital Lens Optimiser' (default of 50 is fine) and 'Sharpness'. The rest are optional. The next tab is the main 'Perform basic image adjustment' tab. The main adjustments to focus on here are 'Brightness', 'White balance', 'Gamma' (black and white points), Shadow and higlhlights sliders. 'Sharpness' is repeated on this tab: try a value of 2.5 to 3 (don't use unsharp mask). It's probably a good idea to set the picture style to 'Neutral' although I often leave it on 'Standard' - mainly because I'm not in the habit of changing it. The final tab is the 'Adjust image detail' tab. It's best to leave the noise reduction on the default values that load (DPP is smart enough to detect your camera and ISO settings and set the noise reduction accordingly). However, you can fiddle with them if you really want.
The Photoshop steps look fine but you should save the TIFF only after you've created and saved the selections that you make. This way, you can go back and re-open the file later complete with the selections later if you want to re-edit. I usually perform selective lighting adjustments in Photoshop (by selecting parts of the image and applying some feathering to the edge) - typically shadow, highlight and midtone contrast adjustments plus brightness. Sometimes I will selectively change the saturation level on parts of the image but these are things you needn't worry about too much until you get a bit more experience.
Feel free to post further questions or contact me directly if you want. Ian Wilson probably won't respond, at least not soon, as I know he is away for a week or two.