I really want to make high quality games and sell them over the internet as shareware for a cheap price. I was thinking of distributing my games through download.com and hopefully make some money off of it, I'm not really looking to get rich, I just want to make a living off of it. However, I am disappointed because almost all the other games on download.com have incredible graphics that are way beyond my graphics creating capabilities at the moment. I want to be able to create incredible graphics but I have no idea where to start. What kind of software should be used? I mean, there's only so much you can do with windows paint or paint shop pro and I can make ok graphics with these tools, but not nearly the high quality that I have seen in other games that I would be competing with. I have NO idea how to get to the level of graphics design that I want to get to. I'm really bummed out about this at the moment. Does anyone have any helpful suggestions? I'm looking to do 2d games at the moment.

It's really hard to read your post ^_^;; So please next time try to structure it a bit better.
As for your question, you already know the answer. Pick up a pencil and a sketchbook and start practicing everyday until you get good. Do the exercices in the book: "Drawing on the right side of the brain". And once you get good at drawing by hand, buy a tablet and photoshop 7 and start practicing computer graphics. Most of the time graphics in games will require you to do animation. I'm sure you can find a couple of tutorials on the net that will teach you the basics of pixel art and sprite animation.
(For instance, check out the infamous Tsugomo's tutorial on pixel art and the forum pixelation)

In any case this is not something you'll be able to do overnight. For most people, it is an everyday struggle to be the best. Practice is the key.

Practice, Practice, Practice. Thats the way it goes. I myself mostly use Windows Paint, mostly because its free and i don't feel like getting up to use another program. XD

Though i do on occasion like to use Photoshop if i want to create some higher quality stuff. Its always hard for an artist to look at all the fantastic work being done out there by people, it can be pretty easy to get bummed out. Its very important that you find your own style of drawing and to keep working at it, don't set your standards to high and be happy with what you accomplish. Before you know it you'll be making some great stuff. Good art isn't made overnight. ;D

Here ya go. I've been working on some sprite tutorials, I'm not satisfied with the ones floating around.

Here are some GREAT art websites, for practice. I use a tablet and Photoshop CS (8, in otherwords), but the best practice will still be pencil and paper.

http://www.ikwarmachine.com/
IKWar Machine

http://www.polykarbon.com/
PolyKarbon

http://www.good-tutorials.com/
Good-Tutorials

Hey count_zulu, thanks for the IK Machine link. I'm a huge fan of steampunk art and haven't seen this before, so cheers. :)