I'm a newbie to electronics with some amount of experience in programming. I'm looking to learn embedded programming and would like to know which board would be a great starting point? I was looking at the Arduino Diecimila... Is it a good place to start with? Will i be able to hook up sensors and other devices(LCD, MOTORS, ETC) (when i learn to use them all!) to this board?
Yes defiantly I would recommend this one and I have been doing this sort of thing for 30+ years and it's the best for beginners I have come across. Start looking at the simple tutorials first at:-
http://www.arduino.cc/playground/
You will be able to do all you want with it.
And if you get stuck you can always ask here. 
Should I buy
Arduino Duemilanove or the Arduino Diecimila ?
is Arduino Duemilanove available yet. I could find only 1 listing... http://tinker.it/ukstore/product_info.php?cPath=29&products_id=88
Arduino Duemilanove is the newest incarnation, but the difference to Arduino Diecimila is not very big. If you can get the Duemilanove go for it otherwise just get the Diecimila.
You can read this thread to understand the difference
http://www.arduino.cc/cgi-bin/yabb2/YaBB.pl?num=1224380865
The Arduino Programming Notebook is a good way to start.
It has many example schematics for interfacing and such as well as programming help.
KG2
Would someone help me because I don't actually know where to start? I think some of the link maybe helpful to me and let me try it. By the way, thank you the link, and it works.
You can download the latest version of the Arduino development envionment software here:
And read about how it works here: