On finding the right banjo: As you learn to play, you'll also be developing your own style of playing and your own taste for sound. As this development progresses, you'll be attracted to certain banjos and turned off by others. For now, you ought to be able to get by on less than the $1,000.00. Find a well made, inexpensive banjo with good clear tone. Saga is in my opinion a better choice than the Goodtime. By the time you're ready for a more costly banjo, you'll know what you want to hear and probably have a good idea where to find it.
On playing and practice: If you've been picking since summer, it's high time you incorporated drop thumb into your practice. I recomend doing this from day one.
Play clean! If you have to pick slowly to pick clean, that's fine. But do pick clean, clear notes.
Strive for accuracy in your attack on the strings.
Pay close attention to the force and volume you put into each note. Learn to lift the melody up from the accompanying notes.
Learn tunes in several different tunings.
Go after finesse in your technique rather than building a huge repertoir at first.
Hunt for different ways of accomplishing things with each hand.
PLAY WITH OTHERS AT EVERY OPPERTUNITY!
Have Fun,
Chip