QUOTE (phoenix_bladen @ Jun 21 2005, 12:10 AM)

How many characters teh least i need to know to be so called literate?
To try to answer the original question "the number of characters you need to know" depends entirely on your purpose.
Which characters you learn will also depend on your ultimate goal.
As general guidelines, I would say 1,500 characters represent basic literacy, 3,000 are enough to read most non-technical publications (magazines, newspapers, modern books, etc.) fluently without a dictionary, and 5,000 will give you college-level literacy. Historians of China whose native language is Chinese may know as many as 10,000 characters (though not all of them do), and some (but few) know even more.
Someone mentioned "advanced read = 15,000 characters." Fortunately for potential learners, this figure is exaggerated. This kind of knowledge would actually make you one of the most educated people in China!
Some posters also mentioned that newspaper Chinese is difficult. This is true of Taiwanese newspapers, which tend to be written in a highly literate style that uses a lot of terse proverbs and specialized vocabulary. But most mainland newspapers are simpler because they were designed to be easily understood by the masses. This is of course a simplification, but I think it holds true in general.
I would say the first 1000 characters are the hardest to learn, not because they're inherenty difficult, but because you have no reference in your mind to tell you how they are composed or pronounced. They might therefore look completely arbitrary. But once you know more than a thousand characters, you will easily recognize the components of the new characters you learn, and in many cases you will even be able to guess their pronunciation.
The good thing to know is that no matter what level you're at, you can always learn more because there are about 45,000 known characters in the Chinese language.
Cheers,
Madalibi