GarMan,
Here is my suggestion and take it for what it's worth. Buy Aerofly Pro, Reflex, or Realflight don't even bother messing with the "free" sims and interfaces out there. FMS is not very realistic, although it is better than nothing. Using just a keyboard is not going to be much help, because one of the biggest problems beginners have is jaming the sticks too hard. I am not sure you would be confused goign from keyboard to sticks, but it definetly will not prepare you if you are just using a keyboard. You can buy an adaptor that will cost about $20-30 depending on which radio you have. There are several people that sell the adaptor on ebay usually bundled with a copy of FMS or some other "free" simulator.
On a budget I can relate to that I would definetly get that rather than have nothing to practice with. FMS cannot hold a candle to any of the other sims though, even realflight (which i personally don;t like much at all). The cheapest of the bunch is currently Aerofly Pro (about $140 shipped), it is also one of the better of the three depending on who you talk to. In the long run I suggest spending money on a quality sim that can actually help you out rather than a cheap one if you can afford it. IF you try and ask what the best sim is on these forums expect different answers, but i think most people would agree you won;t go wrong with AFP, Reflex or realflight.
I would suggest that you hang at the local field and look into flight lessons (reguardless of which sim you choose). Nothing beats a hands on instructor to help you through things, although a sim is very very helpful. If you are buying an adaptor just look on ebay and there should be something there. As for the other sims,
www.aeroflypro.com ,
www.towerhobbies.com ,
www.fxaeromodels.com , you'll probably want to send "WSN" an IM to find out where reflex XTR is being sold now . . . i believe there is a transition going on there.
PPM is a different type of signal just like AM, or FM. You will only find PPM on high-end radios, it has some neat features to it such as a safety setting (servo's default to a certain setting if there is interferance). If you are new and just getting into it, don;t bother with PPM.