Every time I feel like I say something right, I get corrected. Jonathan says I add lots of Rs and Gs where they don't belong, or I use the wrong tone. I'll come back to tones in a second, but first let's talk about pinyin and characters.
Pinyin- This is the system for writing the phonetic sounds that the Chinese characters make using the Latin (Roman?) script. Wikipedia tells me, "pīnyīn literally means "spelled-out sounds." It's tricky though because, it looks like English, but the letters make different sounds than they do in English. For example, an x in Chinese makes the sound of a sh. So the word xiao (meaning small) is pronounced sh-ow (the ow like OW! I hurt my finger!) but read it as one syllable. The vowel i in Chinese makes an ee sound like the ee in bee. But, it is a very phonetic system, so once you learn their letters, than you can read anything that is written in Pinyin. From what I've seen thus far, pinyin can be helpful in some places- road names, metro and bus stops, but more frequently you see things written in characters instead.
Chinese characters- Characters are the picture words. Each picture means something and when you put different pictures together they form different words. So, 大 means big. But 大
Tones- Last, but not least, we have tones. There are 5 tones in Chinese. Tones are the rise or fall your voice needs to make to say different words. The following picture illustrates how they work. If you have any kind of music background, I think it will make sense. You'll notice there isn't a 5th tone on the picture, because 5th tone is neutral.
It's really important to use the right tones when you speak or you could very easily say the wrong word. This is illustrated below. The word 'ma' means 5 different things depending on how you say it. Also, if you look right above the 'ma' in each of the examples you can see the tone marks written. What? Ridiculous I know. How am I supposed to learn this language. Also, if I get excited about something or angry- any tone knowledge I have goes right out the window.
Last example, because I thought this was just too fantastic. The word for dumpling is (in character and pinyin) 水