get ready for a lot of info!!!
i know how you feel! i decided i wanted to do photography a couple years back, and its slow going. ive had a few people take me up on the offer, and actually pay me (thats the hardest part!!) but ive done a lot of stuff for free, or for a gift.
craigslist is a fine option. also, if you know anything about facebook pages, that is another good place to start.
one thing to remember though, people these days are able to get their hands on rather good cameras, and are taking a lot of their own portraits. this is difficult for photographers because instead of going to the "studio" to get family pictures, they are having a friend do it, or doing it with their own cameras or their own pictures from over the year. so becoming a photographer is very hard right now! camera quality and prices are such that almost anyone can be a rather good photographer these days.
dont let that discourage you though! just realize that you arent going to make a lot of money at this (especially at first!)
as far as camera and etc, the professionals all use DSLR cameras. these cameras can be the more expensive ones, and they have interchangeable lenses. this is also a "hazzard" of sorts because removing the lenses increases the chance you might get dirt in the mechanics and have spots on your photos. but its just a step up from "normal" photography, and its more professional.. also one thing is to never use the auto settings. get photo books from the library, and learn how to use the manual, shutter priority, aperture priority and the like. learn about light, ISO, white balance, etc etc etc. basically, you have to know how photography works, and especially how it used to work with film cameras in order to be able to compose successful digital prints.
prepare to use a lot of computer space! invest in the biggest external hard drive that you can afford, the i T options are the biggest that i have seen right now. external hard drives are useful because you can store your images separately from your computer, which helps you if your computer is to get infected (which it will at some point - it happens to everybody)
another step up with regards to computer is to get a mac, but not everyone likes or can take that step.
as far as editing programs, adobe is the best there is. its spendy, and has regular updates, but its worth it. this is a step i havent taken yet myself. i JUST got an older DSLR from a friend of mine. its 5-6 years old, but hopefully i will be able to learn on it. i got it with several lenses, filters and the like, so hopefully if i upgrade i will only have to get the body. the person i got it from has a very nice website, and is also on flickr and facebook: pinkdream photography: http://www.pinkdreamphotography.com/. she is fantastic.
one thing to remember, REGARDLESS of what people say, it doesnt matter if its cannon or nikon; what matters between the 2 is what feels good in your hand. hold them, pick them up, handle them. find out which one you would be more comfortable holding.otherwise, they are the same in quality and everything else.
try to avoid walmart or other kinds of stores like that; those companies definatly make versions for those stores, you arent guaranteed to get the best versions.
one more thing, if you are on facebook, become a fan of as many photographers as you can. this might take a little bit of work, i usually hide them from my wall feed, but at least i have them on my list to review their work when i have a project coming up. another good thing to do is sign up for a newsletter through http://www.digital-photography-school.com/ they give tips, information, and even contests/goals. there are photography contest groups/pages on facebook as well. this will allow you to get good critiques of your work. that kind of thing. a book on posing will also be helpful for people photography. knowing where to position people in groups or alone to make them look their best is a good thing to know.
i could go on and on. but just keep trying, know that it could take 5 years or longer to actually get a real profitable "business" going, and dont let that discourage you. remember that you could do things for free for close friends, just to get your work out there for people to be able to see. but you at some point have to start charging, and you have to be stern and have clear rules about how to make sure to get paid.
as far as how much to charge, i couldnt begin to tell you. right now im charging 40$ per 1hr session, but i live in a VERY rural area where people dont have a lot of money; im trying to make myself accessable to people who have low incomes. my favorite professional studio nearby usually charges 50$ for 1 hr sessions, so i figure im under what they are charging.
right now, i give people the cd of all their images. since i use my watermark, i have to give them a photography release for when they make prints (companies are getting pretty smart about making sure people have permission to make prints)
to make a copyright symbol click alt+0169 (i think!) © then you could use the year and your "name" or whatever. usually, i watermark mine © 2010 erickajen
anyway, if you want to check out some of my work, you can go to blue skies blue waters photography on facebook, or on flickr.com/erickajen
flickr is also another great, and free site for photography. theres some average stuff on there, and also some fantastic stuff. right now, im watching a guy named dan anderson, and though he doesnt have portraits, he has some awesome urban photos, which is something i wouldnt have a clue where to start : http://www.flickr.com/photos/stonebridgedapper/page9/
but you can search for ANYTHING on there, and find a million billion photos to check out.
theres this thing out there too called HDR photography. from my basic understanding of it, on adobe you can combine 3 shots of the same scene with different lighting/lighting settings into one amazing image. you will know them by their glowing colors and lighting. this dan anderson has a lot of photos like that.
anyway, now that ive completely overwhelmed you, feel free to write me and ask questions. :) :) and good luck!!