Exposure is based on the combination of shutter speed, f/stop (aperture, the ratio of focal length to aperture size), and sensitivity.
The basic unit of exposure is often called a “stop”. Increasing exposure by a stop doubles the amount of light forming the picture, decreasing by one stop halves it.
The common (“full”) f/stops are: 1, 1.4, 2, 2.8, 4, 5.6, 8, 11, 16, 22, 32. Lower f/numbers admit more light than higher f/numbers. 1/2 and 1/3 stops exist. The available f/stops depend on the construction of the lens. Your lowest f/stop is probably around f/4, since it is overwhelming likely to be a zoom lens. Zoom lenses, because of their construction, are not as fast (don’t have lower apertures) as a fixed focal length lens.
Common shutter speeds, in seconds, include: 2, 1, 1/4, 1/8, 1/15, 1/30, 1/60, 1/125, 1/250, 1/500, 1/1000, 1/2000. As with f/stops, moving to the next or previous speed halves or doubles the amount of light that enters the camera. 1/2 and 1/3 stops between each also exist.
Film speeds work in the same way. 200 ISO is twice as sensitive as 100 ISO, 400 ISO twice as sensitive as 200 ISO (four times over ISO 100), and so on. The ISO equivelant of a digital camera changes the amount of amplification applied to the signal from the sensor. Increasing the sensitivity often causes the camera to apply increasing amounts of noise reduction, which gives a smeared look to textured surfaces. Many people find the noise reduction effects of higher ISO settings on digital cameras to be worse than the grain of an equivelant film. Therefore, you would want to choose the lowest ISO setting practical for the scene.
Choosing the appropriate settings is based on the camera’s light meter. Once you choose an appropriate ISO speed, adjust the aperture and shutter speed until your meter reads 0.
In general, choose low f/stops when you want to limit depth of field. Depth of field is controlled by 4 factors: the aperture size, the focal length of the lens, the distance to the subject, and the size of the imaging area (sensor or film frame size).
Compared to a 35mm camera, a digital camera will have greater depth of field because the size of the sensor is small and the lens focal length is smaller than a 35mm lens with the same field of view. You will have to experiment to find the best settings for the desired effect. Luckily, you can get instant feedback after you take the picture.
Choose high shutter speeds to freeze action. 1/500 and above give good results with that. Speeds below 1/60 are likely to cause blur from camera shake if you aren’t using a tripod.
Because of the doubling/halving relationship between shutter speeds and f/stops, you have a very large range of possible settings. For example, you might set the camera to f/5.6 and 1/250 and get a proper meter reading, but you want to minimize the depth of field. If you increase the aperture by 2 stops to f/2.8, you would then increase the shutter speed 2 stops to 1/1000, giving you the same exposure, but a different effect.
The EV compensation doesn’t actually change the exposure. Camera meters are designed to assume a scene is a middle tone (18% gray). This is good for most scenes. However, if some part of the scene is greatly off-balance, the meter will be fooled. If the subject is standing in a snowbank, all the snow will make the meter believe there is too much light. The subject will be underexposed. By setting the EV compensation to +1 or thereabouts, you are essentially recalibrating the meter for the scene’s overwhelming brightness. In manual mode, you generally don’t use that. It’s easier and faster to change the aperture or f/stop directly. You can take one shot at the meter-recommended setting, then one or two more with an increased exposure and pick the best one, which is known as bracketing.