Technological Illiterate

My ability to use and understand technology is very mixed. Hand me a brand new electronic device that I have never used before, and I will be able to set it up with very little difficulty. However, ask me to create a spreadsheet . . . and I would have to pull out some graph paper, a ruler, and a pack of coloured pencils . . .
I am fully aware that technology will continue to be more complex, more functional, and more used in society, but I have no idea how to keep up with the speed in which this is happening. A couple years ago I got my first ipod Nano. I thought it was an amazing piece of technology. Now, less than two years later, I have my first ipod Touch (I believe it is the "second generation") and I couldn't be bothered with the extremely old and outdated ipod Nano.
As I already mentioned, my ability to use technology is very mixed. The ipod Touch became second nature to me. However, ask me to create an imovie with sound, animation, video, and pictures . . . and I will be locked in the computer room for months.
The kids at school, now, amaze me. I would never have dreamed of creating a podcast at the age of eight. I was actually quite thrilled to be playing video games with "3D" graphics! My life as a student is vastly different than their own. I would like to know how I can meet the learning needs and interests of the children: they most certainly would not be impressed with an overhead/transparency (well, actually, they probably will be amazed with its simplicity and "archaic" design).
What kinds of technology are available to students in the 21st century? How can I use these in the classroom? How can I use them in the classroom if I have no idea how to "use" them? The 21st century is bringing a big change to the classroom setting as well. There is a shift from note-taking to inquiry and discovery. Though I have "seen" inquiry in the class, I am not fully comfortable with incorporating inquiry based learning into the class. How can I effectively bring it into my classroom?