If you only read this far, allow me to share one piece of advice so you'll stop being scared, and just get started.
The only "right" way to do standards-based grading in your classroom is the way that is most fair to your students and gives you the best information about their learning. Most other variables will align with district policies, course structures, or personal preference.
Smart people like Robert Marzano and +Shawn Cornally would totally agree. I think. :)
That said, here is my guidance for implementing standards-based grading in your classroom.
Other Resources:Standards-based Grading FAQ sheet (for students and parents)
Standards-based Grading Digest (weekly links, blogs, videos, articles)
PPT "syllabus" explaining my standards-based scoring
#sbgchat on Twitter (discussion, support, links)