Throughout the first couple of lessons, it does nothing to explain all the different pronouns. Does anyone have a list I could look at?
Saya - I (formal) Aku - I (informal) Anda - you (formal) Kamu - you (informal) Dia - he/she/it Kita - we (inclusive) Kami - we (exclusive) Mereka - they Kalian - you (collective)
For formal possessives just add saya, anda etc after the noun. For informal use -ku (my), -mu (yours). For his, her and its use -nya. Buku saya. Bukuku. (My book.) Rumah anda. Rumahmu. (Your house) Topinya. (his/her/its hat)
There are others (mostly derived from slang or local languages) but those the most common and the only ones I use.
There is a list of the personal pronouns in the "Tips & notes" of the skill "Basics 2".
I have heard that using "kamu" is rude and to avoid using it in conversation. Any truth to this?
In a formal setting, yes.
To a person quite older than you, yes.
To your boss, teacher, and colleague (unless the colleague is your friend you've known years ago), yes.
To a total stranger, yes.
To a friend in Jakarta, yes. (In Jakarta aku/kamu is usually only used to boyfriend or girlfriend)
It might be seen as rude if spoken by a local or someone fluent, but nearly every Indonesian person I have spoken to is so pleased to have a foreigner just trying to speak their language will earn you huge respect and grace. They love it that you try ... and usually, unless a close friend, would not try to correct you.