Is the Nikon D60 really better than my Powershot?

I have been using a Canon Powershot sx0is with 20x zoom and 10 mega pixels, and love it, but am ready to move on to SLR photography. However, my budget is VERY tight so I haven't really even considered the possibility of buying any time soon. However, my friend just upgraded from the Nikon D60 and offered to sell it to me at 1/2 the price of what she paid for it 2 years ago. It is in good shape and she will let me use her book by David Busch that is a comprehensive guide to SLR photography with the D60. Seems like a no-brainer to me, except that I have been using it on a trial basis for the last week and have noticed that my pictures are not as good as those taken with the point and shoot. Is this because I just don't yet know how to use a DSLR? Should I wait to buy a better DSLR, or would I be better off getting the used camera plus a new flash and better prime lens (I wouldn't be able to afford extra lenses if I buy a more expensive and new camera).

The D60 is an excellent camera and will yeild much better results than your Canon if and only if you know how to use it correctly and if it is not damaged.

the secret lies in the sensor. For your camera the sensor is pretty tiny, about the size of half your pinkie's fingernail… Well mine, cut where the finger ends.a DSLR camera is 15x that size

A Nikon D60 is a very nice camera. It's also supposed to be a user-friendly, entry-level DSLR as well! Are you forgetting any of these things?

1.Is the lens clean?
2.Is the sensor clean? With DSLR cameras, the sensor must be cleaned, this is done by removing the lens and putting it in sensor cleaning mode in one of the menus.
3. With most DSLR cameras, there's no autofocus motor, meaning that you have to focus your images manually. There should be two rings on the lens you can turn: one is wider, and it's for zooming. The other is thinner, it's for adjusting the focus.
4. Check your settings. If you're taking pictures in low light without a high ISO, you'll get bad images. If you're taking pictures indoors with a very small F-stop, you'll need to widen it, maybe to F2.8 or so.

Try using these tips, and keep trying. A DSLR should give you an image which is much better than a point and shoot, as long as you know how to use one well.

I say go for it. Another answerer mentioned the sensor size. It matters a lot! The bigger sensor in the D60 compared to the SX-series camera is HUGE in terms of picture quality/integrity.

P.S. If you're only doing FaceBook, only website picture uploading, and/or if you're a rock climber, then please disregard my opening lines. A D60 is no "better." If you need to print your pictures for any reason, then re-read my opening lines.

When given lots of light, even if you don't know anything with dSLRs, you should get better results with just full Auto mode. You might be overthinking it or the D60 may have developed some problems already.