Sahasara, I sounded EXACTLY like you when I started on my road bike back in September. I had been riding a hybrid for a few months and had no plans to make a switch, but a 2008 Specialized Dolce Elite pretty much fell in to my lap, and I couldn't say no.

The first month was miserable! I felt like the bike was so sketchy compared to my hybrid. I was so close to throwing in the towel completely. Clipping in was terrifying at first too. So I decided to conquer one thing at a time. I put my hybrid's flat pedals on the Dolce, just to give myself a chance to get used to the bike itself and not compound the nerves with trying to learn how to clip in and out.

Riding with the flats that I was used to really did help me learn how the new, much lighter bike handled and then once i had a little confidence I put the SPD pedals back on and I could focus on that.

If you aren't comfortable with the seat all the way up, then gradually raise it as your comfort level and confidence increases (that one freaked me out too!). Don't let anyone tell you that have to do things one way or another - just take it at your own speed and don't give up!!