Generally ISO 100 should be used for sunny to lightly overcast outdoor shooting and the subject is not moving. You may find that ISO 100 works OK for heavy overcast or subjects in the shade too, otherwise use ISO 200 if you keep getting the camera shake icon flashing at you. The latter means that the camera is unable to set the exposure right automatically without gearing down the shutter speed so much that unsteady hands will result in a blurry picture.
Most of the time you will have to use ISO 400 (or higher) indoors or at night or for any moving subjects in daylight. The flash has a greater range when you use a higher ISO.
I don't like to use auto ISO because I don't want the camera choosing something high like 400 or 800 with its attendant graininess without my knowledge.
Using a tripod indoors or at night and when the subject is not moving, you can go back to ISO 100 and get good pictures without flash.
You will have to do some experimentation to see how low (better) you can go with the ISO and not have pictures that often come out blurry.
EV (exposure value) is used for manual photography as opposed to automatic photography. EV stands for a quantity of light, for example a slower shutter speed and a smaller lens opening can stand for the same amount of light as a faster shutter speed and a bigger lens opening in which case both settings have the same EV. Numerically, the bigger the EV number, the smaller the amount of light. A given EV goes with a given ISO and a given lighting condition for example EV 15 for ISO 100 and bright sunlight.
EC (exposure compensation) is used to darken (minus) or brighten (plus) the automatically exposed picture for such purposes as bring out a light subject on an overall dark background or vice versa. But be careful. If you change the EC and aim the camera differently for another trial shot, the camera will make a different automatic setting as well as darken or lighten it additionally for your EC change and the results will be unpredictable. Plussing the EC can also make the camera shake indicator come on, forcing you to up the ISO. Just upping the ISO will not lighten or darken the picture. If a dark picture is a lesser evil than a grainy picture then minusing the EC and lowering the ISO will be useful.
The same rules apply to film as to digital when it comes to ISO, EC, EV, aperture, shutter speed, etc. except you have to finish the roll of film before you can change the ISO (using a film with a different speed).
Digital camera hints:
http://www.cockam.com/digicam.htm