upgrading to DSLR

I currently have a Panasonic Lumix DMC-FZ8. I keep playing around with the different settings (aperture, flash compensation, etc) trying to get good indoor snapshots of my kids. Most of the time, I give up. I can see SOME differences when changing settings, but not a lot. Plus, I never know what to set it on for any given shot in order to get a good quality image. I know this camera is not a DSLR, but it does have a lot of settings (more than a typical point and shoot). So, I guess I'm just wondering if a DSLR would make it any easier to get good shots. I know a lot of it has to do with the lens. I just hate to spend all that money and then the pics still not look any better. I have read so much on photography, but it is still so confusing to me. It's so hard to know what settings to use for any given situation. And, if I can't seem to know the right settings for FZ8, I'm afraid I wouldn't know what to do with the DSLR settings, either. I am looking at the Canon XSi. Any advice? Thanks in advance.