dhammer53 What your seat mate was referring to is a Bahn Card which gives you 50% off the full fare tickets for a year. It's good if you will be taking trains in Germany a lot. For shorter durations, a DB Rail pass is better (can only buy these outside Germany).
Duhey2
If cost is important to you and you're there during weekends, you can buy a DM 40 ticket that will allow travel for up to 5 people all over Germany but only on local trains. Might take longer but it's cheaper. There are also various weekend deals.
Ask [b]Yonatan[/b[ for advice as he is living there and is a budget traveller.