@blueinheaven: THANK you. I've been struggling with the same question and after reading this whole thread all I saw were fanboys not interested in giving a helpful answer.

What he said.

I'll just add that if you chose the master key as your gift you can bypass Capra until later - take the elevator from Firelink into New Londo Ruins, then the elevator next door to the Valley of the Drakes. Open the gate with the master key and you can go into Blighttown via a handy shortcut. Come back and do Capra and the Depths when you're a little stronger.

The "glove thing" is a pyromancy flame. Pyromancy is the only type of magic you can use without investing in either faith or intelligence, so it's great for melee characters who are still building strength (like you right now). Did you rescue a man in tattered robes from the Depths? If so he should be in Firelink, he'll sell you new pyromancies (including fireballs) and you can upgrade your glove with him to do more damage. Get Iron Flesh (aka "tank mode") and Combustion, which should help you with Sif (the wolf). Poison mist is useless. The spell that turns you red and hurts you is the Power Within pyromancy, it'll let you do more damage in melee, never used it myself but feel free to try it out.

If you still want a new strength weapon I'd recommend either a zweihander (get it from behind the giant skeleton in the graveyard near Firelink Shrine) or a Man-Serpent Greatsword (rare drop from the snake guards in Sen's). The zweihander has, IMO, the best moveset in the game - the strong R2 will smash enemies into the floor and you can finish them easily. Lightning, normal or chaos are my preferred upgrade paths with it. The Golem Axe isn't great really.

The spells he mentions are available from the miracle trainers Petrus and Rhea of Thorolund, they're at Firelink just below the shortcut to Undead Parish, but Rhea leaves for the Tomb of the Giants at some point so you'll have to go rescue her. The forest protectors is probably the best soul farming place in the game, but you'll exceed it eventually. PvP is player vs. player (ie the invasions system) and it's awesome barring occasional lag - try it out and see if you like it, 'cause if you do you'll have to adjust your build a little.

Are you cosplaying, or desperate for fire resistance? Because there's no other reason to use the Black Knight Shield - the Silver Knight Shield has better stability and is pretty much the best medium shield.