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http://r.search.yahoo.com/_ylt=A0LEVvogfB5WhgYAtxU3nIlQ;_ylu=X3oDMTByMG04Z2o2BHNlYwNzcgRwb3MDMQRjb2xvA2JmMQR2dGlkAw--/RV=2/RE=1444867232/RO=10/RU=http%3a%2f%2fdungeonmastering.com%2finstantDM%2finstant_dm.pdf/RK=0/RS=kLcoSweIjHkJMNGSpk4KTZlMYCU-^ highly recommend the PDF above for the best advice on DMing. The key is to improvise and be flexible. Let your players drive the sessions, let them set out on adventures that interest them and tie in some "hooks" that relate to their characters' back story if they have it. Keep some battle maps on hand you can slap down for any situation when you want to start an encounter, or even just blank grids you can quickly draw or color on. Be a "why not" DM - if your players ask if they can do something, let them. Make them roll for it and tell them you're rewarding them with a bonus on their next roll to reward their creativity. Preparation can be a huge time sink that isn't fun for the DMs or their players. Definitely live in your world and daydream in it so your players have a fleshed out sandbox to roam in. But try to be as flexible as possible, as the ability to do anything is what makes tabletop RPGs special.
So H, are you still into this? Want to hear about the players have been up to? They've had a few sessions now and the story is starting to develop.