Photo Frantic

It's been a few days. Firecrackers cracked, first week of a new month passed, two more pounds gained from dirty July 4th food and a fear suddenly developed. Fear? Yes. I have suddenly developed this fear that I won't ever be very good at anything. Well, maybe it's not a fear but an ongoing torture that I insist on putting myself through. I realize that I would really love to take pictures for a living or side job. My problem is that it seems the more photos I take and the more people say I am good at it, the more the photos suck when I pull them up in iphoto. They are starting to get blurry and definitely don't look how I want them to.
Can someone please tell me what the secret to a good photo is besides composition. Composition in is a bunch of bologna. I have seen photos taken that with a normal camera would have been crap but some how they are turned into amazing art. What the hell is the secret? I'm struggling here and losing confidence everyday because I can't produce the images that I want. I want vibrant. I want flawless focus and almost accurate color. Maybe it's the camera?
I use a discontinued Panasonic Lumix DMC-FZ4 with a 12x optical zoom and 4 megapixel. Doesn't sound like a bad camera for a seriously amateur photographer although it only allows for two eh hem, discontinued/always on back order, attachments. I know I have a bit of an eye for it from what I am told but I am beginning to get terrified. It's something that I want to do more and more everyday, but I don't know where to keep looking for great photos and I don't know any other techniques to help me out. I need a class that isn't a bagillion dollars. A digital photography/self-esteem class. I am so afraid that I will mess everything up. I just really need some direction here. Anyone? Tips, tricks, techniques, classes? This is something I know I could be good at and I want to be good at it.