I started another thread and read some comments from frustrated sellers. I thought, "wow, they sound just like me when I first started."
Here's my secret:
http://etsymentors.blogspot.com/p/critique-your-own-shop.html
The above shop critique checklist pretty much saved my shop. It's more thorough than any single Etsy Seller Handbook article and it's very straightforward. No pats on the back or warm fuzzies: just clearly stated info. No, you won't get 5 sales overnight, but it was a great starting point for me.
This helped me put certain things into perspective:
*I needed to work on photos (my bath towel background wasn't working, lol!)
*I needed to re-word all my titles and tags (took me weeks to learn the concept)
*I needed to add more items (I guess only 8 items was not enough!)
I went from 1 sale in the first month (June 2011), to 175 sales by the end of 2011.
Please give this checklist a try! Selling on Etsy is not just about SEO or photos, it's about having the whole package.