here is a link to a picture of my machine, not the best one, but the only one i could find... as you can see it has 14 different kinds of stitches that it does, so i'm just a little confused on which setting to use and how to line up the fabric etc. Thanks!

Here is a link that might be useful: my machine

A serged seam is made with a serger sewing machine, also called an overlock machine, which is a different animal entirely from a standard sewing machine. A serger sews with 3, 4, or 5 threads and has cutting blades that trim the seam.

However, many home sewing machines have an overlock stitch that will finish the edge of the fabric in the way you describe. If your machine does not have an overlock stitch, then use the zig zag stitch.

In the web page in the link at the bottom of this post, scroll down a bit to the How to Wind a Bobbin section and you'll see the stitch selection panel on the machine. Stitch 16 (second from the right) is an overlock stitch. (I'd also test out stitch 9 and stitch 12.)

If you have a stich selection like this on your machine, test it on a scrap. The stitching line forms to the left, and every 2 or 3 stitches, the needle jogs to the right, giving that overlock part of the stitch that encloses the edge of the fabric. You want to line up the fabric so that when the needle jogs to the right, it's right at the edge of the fabric - just barely over the edge of the fabric.

If you use a zig zag, you line up the edge of the fabric in a similar way: left "zig" of the needle is on the fabric, right "zag" of the needle is lined up with the edge of the fabric.

When you test the stitches, try making the stitch length shorter. This will make the overlock "jog to the right" part of the stitches closer together. Test it to see if that gives you more of the effect you want.

Hope that helps,
CMC
ps: Here's the Wikipedia definition of a serger machine, in case you are interested:

http://en.wikipedia.org/wiki/Overlock

Here is a link that might be useful: Singer 6234 threading and bobbin winding instructions

You can also "serge" the edge with a regular zigzag machine. Set the zigzag to it's widest point and the number of stitches per inch at the lowest point that will still be moving forward. Release a little of the presser foot tension and put on the button hole foot.
It's not as fancy nor as fast as a real serger, but it works very well and is a heck of a lot cheaper than buying a serger :^)

Test different settings on your zigzag machine until you get one you like. You might even find an effect you like for some other purpose. If the edges won't show, then a loose zigzag will keep the fabric from unraveling. If the edges will be visible, then a closer stitch might have a more finished edge look to it.

If you zigzag the edges before sewing the seams together, that might make it less bulky when you were finished with it, but it would also make it difficult to trim seams first. Try it several different ways until you find the way that works best for you.

Other than zigzags, you can cover the edges with bias tape. My machine doesn't have a zigzag stitch so sometimes that's what I use to cover unravely edges.