Hi MelissaB,
You've been getting some good advice here, just though I'd throw in my two cents worth.
One of the most intriguing aspects of bread baking for me is the variety of tools, techniques, recipes and processes that all work! Everyone has their favorite. One of the most fun aspects of bread baking is experimenting, trying different things until you find what works best for you.
Some people use a food processor for bread dough and they just love it. There is an excellent bread book for food processors titled "Best Bread Ever" by Charles Van Over - you can see it on Amazon.com here:
http://www.amazon.com/gp/product/0767900324/sr=8-1/qid=1156709139/ref=pd_bbs_1/103-9288332-5798265?ie=UTF8">Best Bread Ever
The tricky part about using a food processor for bread dough is that the high speed of the the blade has the potential of 1) heating up the dough too much and 2) over-kneading the dough. If your machine has a plastic dough blade, use it instead of the metal one. Read your owner's manual about bread dough and give it a try.
No matter how you decide to start out, persistence will be your friend... bread baking is both science and art and like any art, mastering the art takes experimentation and practice.
Other people LOVE their bread machines. For fresh home made bread with the least amount of mess, time and "bother", bread machines are a wonderful convenience. Their sole purpose in life is to knead and bake bread, it's what they are designed for, and for many people, a bread machine gives they exactly what they want. (personal discloser: I own 3 different brands of stand mixers, love them all, each has it's own "thing that it does best" - and I often use the the bread machine to knead my bread dough. I don't bake bread in it (rather I take it out and let it rise more slowly at cooler temperatures), but it's the best gluten-developer that I've used).
Other people love their stand mixers and take a great deal of pride in the bread doughs that their stand mixer produces. I've had great bread from stand mixers and highly recommend them IF you are a baker and in the market for a multi-purpose machine that will not only mix bread dough but cream butter, whip cream and egg whites, mix up cake batters and cookie doughs, do mashed potatoes and a host of other cooking and baking tasks. I would not recommend that a newbie bread baker go out and spend the money on a good stand mixer just for making bread, I'd hate to see you make that kind of investment until you are hooked on bread baking and thing that you need one for bread and other purposes.
Other people swear by kneading by hand, they can't conceive of kneading bread dough by any other means. I have the utmost respect and admiration for them. Still I must say, kneading by hand is a messy and, in my opinion, difficult task, and I've never been able to develop a gluten network as well by hand as a machine can do.
In the end, all 4 methods of dough-making have the same goal: to develop a strong gluten network in the dough that can capture the gasses that are released by the yeast that both flavor and rise the dough. The best tip I can give a newbie bread baker is to learn what well-developed dough looks like and feels like. I often suggest that new bread bakers buy a package of frozen bread dough at the grocery (Rhodes or Bridgeport or something), take it home, let it thaw out in the refrigerator and then learn from it. What it looks like. What it smells like. Put your hands in it and feel it. Shape it into rolls or a loaf, let it rise and bake it. See how it bakes up. That gives you a good idea of what well-kneaded bread is like. (Granted, not all varieties of bread require this type of dough development but it's a good learning experience for new bread bakers.)
Here's a hint: the most often mistake new bread bakers make is to add too much flour to their dough. The right consistency of dough for the type of bread you are making is probably the most important thing to learn. In general, you want a dough that is soft and moist but that holds a ball shape while sitting on the counter. Sometimes people say it should feel like a baby's bottom - soft and "lively", not hard and solid. Even with a bread machine, it takes practice to figure out the right amounts of flour and water to use to get the results that you like.
Good luck to you! Happy loaves!