Thorn, we have the same system here.

First you get "L" plates - Learners. You pay for and sit a written test and are only allowed to drive with a qualified driver. You have to have "L" in bold yellow/black on front and rear windscreens for the world to see.
When you are ready, you pay for and sit a practical test. If you fail and have to resit, you pay again, so money is a great incentive to practice good habits. If you pass you get your provisional licence. You can drive on your own, no passengers and a curfew of 10pm. I think you are provisionally registered for 18-24 months (sorry, cant remember how long) and then get your full licence if your record is clean. If you do a defensive driving course, you can get several months off this time.

CC... Just read the links, so pleased everyone was let off relatively lightly - physically at least.