Magic loops is very easy. I would practice with a dozen stitches to start out.
there is a cool picture of it here
http://www.knitting-and.com/wiki/Magic_Loop - this shows you what it looks like as you work.
when I come back from walking the dog I will take a few photos of myself holding the needles to help you better understand.
basically, as you knit, you are moving the working stitches around the very long circular needle.
Here is an explanation much better than I could write:
http://weebleknits.net/mloop.html - with photos!
I use a turkish cast on for my toes. Here is an explanation -
http://www.knittingdaily.com/glossary/middle-east-wrap-cast-on.aspx
I usually cast on 9 stitches per sock and then I immediately double them - as I work that first full roll, I use two strands of yarn, part coming from the ball and the other part that was the waste yarn from my cast on. so after 1 row, I now have 18 stitches. Then I follow the following pattern (all my needle wrapping is with on strand of yarn from now on):
1st four stitches, knit individually
next 2 stitches - knit together
next 2 stitches - knit individually
next 2 stitches - knit together
next 2 stitches - knit individually
next 2 stitches - knit together
next 4 stitches - knit individually
You now have 15 stitches on each side of your project.
now you have to start your increases. There are a couple of ways to do that - you can make all increases near the side seam, or you can do what I did in the photo and have them travel in towards the center of the toe. if you want more of an explanation on this, let me know.
After you finish your increases (I increase til I have 36 stitches on each side of the project), do whatever straight knitting you like - here is your chance to be creative on the top part of the sock.
I can't really teach you how to do the heel - it is copyrighted material from Queen Kahuna's Crazy Toes and Heels book. BTW, I am using fingerling yarn with size 1 needles.
Good luck - I'll post more photos later.
Susan