I am going to say that you have received very good advice so far. When I first acquired my dSLR I had also won an evilbay auction for a cheeeep tripod (11 cents and $7 shipping). The first year I used it very little, then more over time - then it broke and fell apart. I did learned quite a bit from it. What I liked and what I hated. A ball head yes - a pan and tilt head - absolutely not. Also, that a lot of personal preference goes in to this. So, I had put a lot of thought in to what to get next for a tripod.
I wanted and needed something I could travel with in my carry on luggage, so I had size restrictions. I selected the Benro A-168M (its aluminum and referred to as the travel angle - it also comes in carbon fiber model for more $$$$). It came with a ballhead (a cheap POS that I used once - liked the concept, hated the implementation) and went looking for another ballhead. Benro has since come out with a complete line of more substantial ballheads that make the free one they included with my tripod a real embarrassment. I spent $150 on the legs. Some would consider them a bit light, but they work for me very well.
Now, I knew that I wanted to take stitched panoramas shots both in the vertical as well as in the horizontal. I also knew that (for me) its impossible to get a tripod perfectly level, and I did not want to spend a lot of time trying to get it level on each setup, so that when I panned (turned the ball head) it would pan on a level horizontal plane. So, I went looking for a "panning ballhead". Just about all the ball heads have a panning base. However, if the tripod is not level, the panning base will not turn on a horizontal plane. To fix this you need the panning base on top of the ballhead (you level the assembly via moving the ballhead, thus the panning base on top of the ballhead is level). Now that puts a bit more weight higher up, but for me that is a small price to pay. I settled on an Acratech GP (you can turn it upside down and it becomes a panning ballhead and its also a gimble). Its expensive $400, but the other options are even more $$$(Really Right Stuff, Arca Swiss, etc.). 90% of my shots are from a tripod and its worked out to be a very good investment.
Now - the rest of the story. I started out with a K100 body which I kept when I upgraded to the K20 body. I am out taking shots, and started bringing my K100 to take some other shots with. Then I wanted to use one body one way on a tripod and the other body another way - but needed a second tripod. So, I went shopping on Craigslist for a second hand used tripod in reasonably good condition - reasonably priced (under $100 - took about 6 weeks of looking). I wound up buying a Manfrotto 3001 Pro with a 486RC2 ballhead. Now, I find I hate the 486RC2 ballhead because it has a safety catch that I need to work with one hand, while the second hand pulls the release to attach and detach the camera body being held by the third hand (that I don't have). Personal preference (other folks apparently do not have the problem). So, now I am out shopping for another ballhead - however as good as the GP ballhead is, I really do not want to spend another $400 (my wife saw the charge and told me it better be gold plated and jewel encrusted). I have a nodal ninja 3 that I will be using on the second tripod (that has a built in panning base), so - that removes the "panning" requirement. That opens up the entire universe of Acra Swiss (A-S) ballheads (Acratech, Kirk, Acra Swiss, etc.) and brings the price down to a floor of about $80 on up, depending on what you want. I want to keep everything A-S compatible so that everything is interchangeable (able to mount either camera on either tripod or on the NN3).
I have used the term Acra Swiss - which is a company that developed a quick release plate and clamp system. Acra Swiss comparable means that one company's camera base plate will fit into another company's ball head clamp. This style of release plate and clamp works VERY well for me.
So, that is my tale of woe. The cheap tripod taught me a lot of what I wanted and needed. Understand that has let me define my requirements so that I can purchase what I need. Unfortunately - I find my needs are somewhat expensive, so its a pay as I go proposition. I also brown bag my lunch and thus add to my camera / mechanical support piggy bank.
The other thing is that I have found that some of the ballhead companies have videos that explain and show capabilities very well. I would recommend watching to see if that is what you need...
This video gives an overview of a ballhead with both a panning base and on top of the ballhead.
GP Ballhead instructional Video*::*Acratech
Here is a video on the Acra Swiss comparable
Quick Release System Instructional and Tutorial*::*Acratech
Here are a few more videos on related items.
Product Info*::*Acratech
Here are some tripod videos