Ok I'm starting to get kinda stonewalled after beating the 1st proper boss.
Tried going to kill the Capra Demon and that fucker makes a cute sandwich of me with his dogs.
Tried going to the watery ghost area and after clearing it out there is no way to move forward, a locked door to some kind of contraption and unopearable lever/lift.
Ar this point I'm starting to consider the foresty area behind the Titanite Demon.
 
What's the best way to proceed you guys found?

http://www.giantbomb.com/dark-souls/61-32697/after-the-first-bell/35-518101/#13

His link is fine, but i'll just answer it here for those that wander into this thread wondering.

You should have gotten a new key somewhere between the minotaur boss and the gargoyles called the "basement key". Head back to where the dragon coats the bridge in flames and that sun worshiping knight is. The door to the basement is right there, before the dragon and before the sun worshiping knight.

If he is at the Capra demon, he already used the basement key. You need to kill the capra demon. He hits really hard, but all his attacks can be blocked except one which is easy to dodge. The first step is to kill those dogs, so run up the ramp where only one enemy can come at a time and kill them there. Then run back down and stay extremely close to the Capra demon, literally target him, shield up, and stand right on him. Then strafe around him while hugging him. He can't really hit you at that point and when he does your shield will absorb it. Wait for openings and whittle him down. This tactic (hug and strafe) can be used on tons of hard fights with humanoids. It is pretty cheap, but it works wonders. After that, you are off to the Depths. You COULD go through the forest, it isn't that bad. I did the forest before the Capra demon.